Sec. 36(1)(iii)- Commercial expediency is to be proven for allowance of expenditure incurred- ITAT

Brief of the Case:  ITAT Delhi has held In the case of M/s Chemical Sales and Services vs. ITO that the only condition for claiming deduction under section 36(1 )(iii) is “commercial expediency” of the expenditure incurred and once the said condition is fulfilled, no further factor can be brought in to deny the legitimate claim of deduction. It has not been established by AO that advances are for non – business purposes and as such, disallowance is unsustainable in law. Facts of the Case:  Assessee firm was engaged in the business of trading of chemicals. It was observed by...