https://www.taxtmi.com/caselaws?id=97144 Remuneration and commission earned by a firm as managing and sole agent are taxable as business income where the governing agreements and surrounding facts do not establish a master-servant relationship. Managing agency status alone does not make the agent a company employee; the decisive test is whether the arrangement is a contract of service or an agency conducted as a profit-making business. A partnership formed to promote a company, obtain its managing agency and continue that activity for profit carries on business, and even a single commercial venture may constitute business. The receipts fall under business income rather than salary. 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 Remuneration and commission earned by a firm as managing and sole agent are taxable as business income where the governing agreements and surrounding facts do not establish a master-servant relationship. Managing agency status alone does not make the agent a company employee; the decisive test is whether the arrangement is a contract of service or an agency conducted as a profit-making business. A partnership formed to promote a company, obtain its managing agency and continue that activity for profit carries on business, and even a single commercial venture may constitute business. The receipts fall under business income rather than salary. Case-Laws Companies Law Sat, 01 Mar 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97144