THE COMMISSIONER OF INCOME TAX, BOMBAY. vs M/S. INDIAN ENGG. & COM.CORP. P. LTD.

The Supreme Court addressed the interpretation of Section 40(a)(v) and Section 40(a)(5) of the Income Tax Act concerning the deductibility of commission paid to directors. The Court held that the commission constituted additional remuneration and was not covered by the provisions disallowing certain perquisites, thus allowing the deduction for the entire amount. The Court also clarified that the expenditure in question did not qualify as entertainment expenses under Section 37(ii) of the Income Tax Act, affirming the Tribunal's decision.