Amount paid wholly and exclusively for business purpose is allowable expenditure

ACIT Vs Amway India Enterprises Pvt. Ltd (ITAT Delhi) ITAT Delhi held that the amount paid by the appellant company to ABOs is payments which is directly related to the business activity and incurred wholly and exclusively for the purpose of business. Accordingly, the same is allowable as business expenditure. Facts- The appellant is selling goods directly to customers through independent distributors known as Amway Business Owners (ABOs). The ABOs are entitled to commission as per their entitlement. Earlier no Service Tax was being charged and paid by the ABOs but later on, the ABOs started r...