DHARAMVIR DHIR vs THE COMMISSIONER OF INCOME-TAX,BIHAR & ORISSA

The Supreme Court ruled that under the Indian Income-tax Act, 1922, sections 10(2)(iii) and 10(2)(xv), the amounts paid by the assessee to M as a share of profits were deductible as business expenses. The Court emphasized that expenditures incurred for commercial expediency, even if voluntary, are allowable if they benefit the business. The Court held that the payments were wholly and exclusively laid out for the purpose of the business, thus entitling the assessee to the claimed deductions.