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PETITIONER: THE COMMISSIONER OF INCOME-TAX,BOMBAY
Vs.
RESPONDENT: CHANDULAL KESHAVLAL & CO., PETLAD
DATE OF JUDGMENT: 17/02/1960
BENCH: GAJENDRAGADKAR, P.B. BENCH: GAJENDRAGADKAR, P.B. SARKAR, A.K. SUBBARAO, K.
CITATION: 1960 AIR 738 1960 SCR (3) 130 CITATOR INFO : R 1961 SC 668 (8,12) R 1961 SC1028 (7,8) F 1973 SC2486 (4,8) R 1979 SC1441 (21)
ACT: lncome-tax-Managing Agent relinquishing part of commission due from managed company-Whether amount relinquished is deductible as expenditure expended wholly and exclusively for Purpose of his business-Finding, if one of fact-Indian Income-tax Act, 1922 (XI Of 1922), S. 1O(2) (XV).
HEADNOTE: The assessee was the Managing Agent of a company and for the accounting year 950 its total commission was Rs. 3,09,114. At the oral request of the Directors of the Company made during the accounting year the assessee agreed to accept Rs. 1,00,000 only as its commission and relinquished the balance. The Income-tax Officer and the Appellate Assistant Commissioner hold that the sum of Rs. 3,09,114 had accrued to the respondent as commission and that the whole amount was taxable. On appeal the Appellate Tribunal held that out of the accrued commission the amount relinquished, i.e. Rs. 2,09,114, was allowable expenditure under S. 10(2) (XV) Of the Inc...