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[satbir singhwahi]

Sir

two case laws quoted in baba rayaon fabrics pvt ltd vs. income tax officer ward (itat ahmedabad) 1(1), surat.  i.e.

a) Lachiminarayan madan Lal 

b) Swadesi cotton mills ltd

Both cases are of Supreme court.  Kindly help to trace text of  these two cases.

[Surender Gupta]

You may be searching for these citations:

1972 (9) TMI 4 - SUPREME COURT

Lachminarayan Madan Lal Versus Commissioner of Income-Tax, West Bengal

and

1966 (9) TMI 30 - SUPREME COURT

Swadeshi Cotton Mills Company Limited Versus Commissioner Of Income-Tax, U. P. (No. 1)

Bases on the above decisions, the following observations of the CIT(A) found favor from the ITAT,

"The Hon’ble Supreme Court in both the cases have clearly stated that mere existence of an agreement with selling agents or payment of commission does not prove that services are rendered and that the payment is wholly and exclusively for the purpose of business."

AI Summary

Payment of commission not conclusive proof of services rendered or exclusive business purpose under cited precedents. The reply supplies citations to two Supreme Court decisions and states the controlling proposition: the mere existence of an agreement with selling agents or payment of commission does not, by itself, prove services were rendered or that such payments are wholly and exclusively for business purposes.