https://www.taxtmi.com/caselaws?id=97144 A managing agent is not a servant of the company merely by virtue of that status; the decisive test is whether the agreement and surrounding facts create a contract of service or an agency carried on as business. Where a firm is constituted to float a company, secure its managing agency, and continue the activity for profit, the receipts are business income if no master-servant relationship is shown. The same principle applies to sole agency where no contract of employment exists. The article concludes that both managing agency and sole agency receipts were assessable as business income under section 10, not as salary under section 7, of the Indian Income-tax Act. en-us Sat, 01 Mar 1952 00:00:00 +0530 Sat, 14 Jan 2012 12:01:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97144 A managing agent is not a servant of the company merely by virtue of that status; the decisive test is whether the agreement and surrounding facts create a contract of service or an agency carried on as business. Where a firm is constituted to float a company, secure its managing agency, and continue the activity for profit, the receipts are business income if no master-servant relationship is shown. The same principle applies to sole agency where no contract of employment exists. The article concludes that both managing agency and sole agency receipts were assessable as business income under section 10, not as salary under section 7, of the Indian Income-tax Act. Case-Laws Companies Law Sat, 01 Mar 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97144