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Walchand And Co., Ltd. vs The Hindustan Construction Co., Ltd. on 26 July, 1943

The Excess Profits Tax Officer then referred to the case of Walchand & Co. Ltd. v The Hindustan Construction Co., Ltd. 1944-12 ITR 104 : (AIR 1944 Bom 5) (A) and, following it, held that it appeared to be both unnecessary and unreasonable to pay more than the agreed proportion of the profits after deduction of the excess profits tax. He went on to give the finding that though the increased expenditure under commission was of a nature which, under the provisions of Section 10 of the Income Tax Act, was an allowable deduction, it was unreasonable and unnecessary having regard to the requirements of the business and the actual services rendered by the persons concerned.
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