https://www.taxtmi.com/caselaws?id=56292 Sole selling agency commission was considered deductible where it was paid under a genuine business agreement and supported by actual commercial services. The absence of prior approval under section 294AA of the Companies Act, 1956 was not treated as decisive for income-tax deduction, because allowability under tax law is determined by the income-tax provisions and not by a mere breach of another statute. On the facts, the agents rendered services, incurred expenses and assisted recovery, and the rise in turnover supported business purpose. The commission was therefore treated as allowable business expenditure and the disallowance as unsustainable. en-us Fri, 24 Feb 1984 00:00:00 +0530 Thu, 02 Dec 2010 18:10:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56292 Sole selling agency commission was considered deductible where it was paid under a genuine business agreement and supported by actual commercial services. The absence of prior approval under section 294AA of the Companies Act, 1956 was not treated as decisive for income-tax deduction, because allowability under tax law is determined by the income-tax provisions and not by a mere breach of another statute. On the facts, the agents rendered services, incurred expenses and assisted recovery, and the rise in turnover supported business purpose. The commission was therefore treated as allowable business expenditure and the disallowance as unsustainable. Case-Laws Income Tax Fri, 24 Feb 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56292