https://www.taxtmi.com/caselaws?id=203589 The Income Tax Appellate Tribunal remitted the case back to the Assessing Officer for fresh adjudication regarding the disallowance of commission paid to Direct Selling Agents by a Non-Banking Financial Company. The Tribunal found that the liability to pay the commission was based on both the sourcing of hirers and the volume of business generated, not solely on hire-purchase charges receivable by the company. The Court upheld the Tribunal's decision, emphasizing the need to differentiate between actual and contingent liabilities for allowable deductions under the Income Tax Act. The appeal was dismissed, and the case was remanded for further examination. en-us Fri, 03 Jun 2011 00:00:00 +0530 Fri, 22 Jul 2011 13:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203589 The Income Tax Appellate Tribunal remitted the case back to the Assessing Officer for fresh adjudication regarding the disallowance of commission paid to Direct Selling Agents by a Non-Banking Financial Company. The Tribunal found that the liability to pay the commission was based on both the sourcing of hirers and the volume of business generated, not solely on hire-purchase charges receivable by the company. The Court upheld the Tribunal's decision, emphasizing the need to differentiate between actual and contingent liabilities for allowable deductions under the Income Tax Act. The appeal was dismissed, and the case was remanded for further examination. Case-Laws Income Tax Fri, 03 Jun 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203589