https://www.taxtmi.com/caselaws?id=7320 A deduction for payments to a sole selling agent depends on proof that the expenditure was actually laid out wholly and exclusively for business purposes. The mere existence of an agency agreement and proof of payment does not by itself establish deductibility; the surrounding facts must show that the arrangement was genuinely acted upon and that services were rendered commensurate with the payment. On the unchallenged facts, sales were made directly by the assessee and no adequate basis for the payment was shown, so the deduction was not allowable and the revenue's challenge succeeded. en-us Mon, 12 Feb 1968 00:00:00 +0530 Tue, 17 Feb 2009 20:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7320 A deduction for payments to a sole selling agent depends on proof that the expenditure was actually laid out wholly and exclusively for business purposes. The mere existence of an agency agreement and proof of payment does not by itself establish deductibility; the surrounding facts must show that the arrangement was genuinely acted upon and that services were rendered commensurate with the payment. On the unchallenged facts, sales were made directly by the assessee and no adequate basis for the payment was shown, so the deduction was not allowable and the revenue's challenge succeeded. Case-Laws Income Tax Mon, 12 Feb 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7320