1981 (2) TMI 73

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..... L J.-The assessee-company during the accounting year 1961-62 claimed a deduction of Rs.. 69,228 stated to have been paid as commission to M/s. Textile Processing Agency, Amritsar, for procuring business for the assessee. This amount was disallowed by the ITO but, on appeal, the AAC modified the order and allowed a deduction of Rs. 33,809, the amount actually incurred by way of expenses by M/s. Tex .....

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..... the assessee was bound to reimburse to the said agency for the actual expenditure incurred by the latter. The assessee was, therefore, bound under law to pay the amount in dispute to M/s. Textile Processing Agency and the said amount was, therefore, rightly allowed as business expenditure of the assessee. The question referred to is, accordingly, answered in the affirmative, against the revenue a .....

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