https://www.taxtmi.com/caselaws?id=7836 A payment described as 50% commission under an agency agreement was held deductible as business expenditure because it was incurred on a commercial basis to secure finance and support production and sales. The court construed the agreement by its covenants and surrounding commercial circumstances, and found that the agreed commission formula did not, by itself, convert the arrangement into a true profit-sharing joint venture. Heavy financial participation, control over the plant, and an undertaking to bear losses were insufficient to show that the amount was the assessee's own share of profits. The amount was therefore deductible under section 10(2)(xv) and not taxable as profit in the assessee's hands. en-us Tue, 20 Jan 1970 00:00:00 +0530 Thu, 19 Mar 2009 17:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7836 A payment described as 50% commission under an agency agreement was held deductible as business expenditure because it was incurred on a commercial basis to secure finance and support production and sales. The court construed the agreement by its covenants and surrounding commercial circumstances, and found that the agreed commission formula did not, by itself, convert the arrangement into a true profit-sharing joint venture. Heavy financial participation, control over the plant, and an undertaking to bear losses were insufficient to show that the amount was the assessee's own share of profits. The amount was therefore deductible under section 10(2)(xv) and not taxable as profit in the assessee's hands. Case-Laws Income Tax Tue, 20 Jan 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7836