1966 (6) TMI 1 - HC - Income Tax

Amount paid to a consultant which had been entrusted with the preparation of standard budget forms, establishment of budgetary control and evaluation of standard costs - deductible in the computation of the income of the assessee under s. 10(2)(xv)

Summary

The High Court of Mysore ruled in favor of the assessee, a private limited company involved in mining and exportation of manganese ore, allowing a deduction of Rs. 10,500 claimed for expenses related to the preparation of standard budget forms and evaluation of standard costs. The court determined that the expenditure was incurred wholly and exclusively for the purpose of the business, as per section 10(2)(xv) of the Indian Income-tax Act, 1922.