https://www.taxtmi.com/caselaws?id=234302 Where an assessee proves that a payment was made through an established agent, disallowance under section 40(a)(ia) was not justified merely because the Assessing Officer treated the payment as one attracting tax deduction at source. The Court accepted that agency can arise without consideration under section 185 of the Contract Act, and the absence of a profit motive in the agent's acting on behalf of the assessee did not negate the agency relationship. On that basis, the finding that the amount was paid through an agent was upheld and the expenditure was not disallowed. en-us Wed, 10 Apr 2013 00:00:00 +0530 Thu, 06 Jun 2013 10:12:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=234302 Where an assessee proves that a payment was made through an established agent, disallowance under section 40(a)(ia) was not justified merely because the Assessing Officer treated the payment as one attracting tax deduction at source. The Court accepted that agency can arise without consideration under section 185 of the Contract Act, and the absence of a profit motive in the agent's acting on behalf of the assessee did not negate the agency relationship. On that basis, the finding that the amount was paid through an agent was upheld and the expenditure was not disallowed. Case-Laws Income Tax Wed, 10 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=234302