Dismissing the appeal of the revenue the Court held that the salary paid to director is held to be allowable as business expenditure . Followed\u00a0\u00a0 Sasoon J David & Co P. Ltd v.CIT \u00a0( 1979 ) 118 ITR 261 ( SC), wherein\u00a0 it was\u00a0 held that the expression \u2018 wholly and exclusively \u2018 appearing in the said section does not mean \u2018necessarily \u2018\u00a0\u00a0 . Ordinarily ,it is for the\u00a0 assessee to decide whether any expenditure should be incurred in the courses of his business .\u00a0\u00a0 Such expenditure may be incurred voluntarily and without any necessity . If it is incurred for promoting the\u00a0 bisiness and to earn profits , the assessee can claim deduction u\/s 10(2)n(xv)\u00a0 even though there was no compelling need for incurring such expenditure . The\u00a0 fact that somebody other than the assessee is also benefited by the expenditure should not come in any way\u00a0 of an expenditure being allowed by\u00a0 way of deduction u\/s 10(2) (xv) of the Act . ( ITA No . 1671 of 2017 dt 4 -3 -2020 ( AY. 2007 -08)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure \u2013Wholly and exclusively – Salary paid to director- Held to be allowable though the payment made was voluntary . <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13247","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3rF","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13247"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13247\/revisions"}],"predecessor-version":[{"id":13248,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13247\/revisions\/13248"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}