https://www.taxtmi.com/caselaws?id=9175 A claimed selling commission was disallowed because the assessee's original contractual liability had been extinguished by a later mutual revision of the agreement. The parties agreed that the selling agent would charge only actual expenses incurred, and the Court treated this as novation, so no real liability to pay the commission survived in law. Mere mercantile book entries could not revive a liability that no longer existed, and a later unilateral or conditional claim for deduction was ineffective. The commission was therefore not deductible under section 10(2)(xv) of the Indian Income-tax Act, 1922, and the claim failed. en-us Fri, 11 Jan 1974 00:00:00 +0530 Sat, 20 Jun 2009 11:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9175 A claimed selling commission was disallowed because the assessee's original contractual liability had been extinguished by a later mutual revision of the agreement. The parties agreed that the selling agent would charge only actual expenses incurred, and the Court treated this as novation, so no real liability to pay the commission survived in law. Mere mercantile book entries could not revive a liability that no longer existed, and a later unilateral or conditional claim for deduction was ineffective. The commission was therefore not deductible under section 10(2)(xv) of the Indian Income-tax Act, 1922, and the claim failed. Case-Laws Income Tax Fri, 11 Jan 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9175