https://www.taxtmi.com/caselaws?id=276840 Exemption for employee commission under the 1922 notification depended on three cumulative conditions: the payment had to be out of, or determined with reference to, business profits; it had to be disallowed in the employer's computation but included in business profits; and tax had to be assessed on the disallowed amount in the employer's hands. The third condition was admitted. On the facts, the commission was linked to sales representing trading profits, and the disallowance arose from the arrangement's tax-reduction character. The commission was therefore exempt in the assessee's hands, and the reference was answered in the affirmative. en-us Wed, 25 Oct 1961 00:00:00 +0530 Mon, 19 Nov 2018 12:53:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276840 Exemption for employee commission under the 1922 notification depended on three cumulative conditions: the payment had to be out of, or determined with reference to, business profits; it had to be disallowed in the employer's computation but included in business profits; and tax had to be assessed on the disallowed amount in the employer's hands. The third condition was admitted. On the facts, the commission was linked to sales representing trading profits, and the disallowance arose from the arrangement's tax-reduction character. The commission was therefore exempt in the assessee's hands, and the reference was answered in the affirmative. Case-Laws Income Tax Wed, 25 Oct 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276840