Assessee  paid retainership fees to two foreign agents for marketing and business development of assessee’s software in USA. Assessing Officer disallowed the expenditure on ground that same was irrational and unjustified in comparison to income earned from export of software. CIT(A) up held the order of the AO. On appeal the Tribunal held that the assessee got good business in USA in subsequent years.   Mere fact that payment made to aforesaid entities by way of retainership fee did not result in commensurate business in USA in year relevant to assessment year 2008-09, did not imply that expenditure incurred was not for purpose of assessee’s business.  Since expenditure is  not in nature of capital expenditure or personal expenses and is  laid out or expended wholly and exclusively for purposes of business, same is allowed.  (AY. 2008-09)