Dismissing the appeal of the Revenue the Tribunal held that even in the absence of any agreement with the commission agent, simply introducing or referring potential customers to the assessee falls within the ambit of “services rendered” by the commissioning agent so as to make the claim of commission payment eligible for deduction. (AY. 20016-17)
Dy. CIT v. Ganges International P. L td (2022) 95 ITR 161Chennai) (Trib)
S. 37(1) : Business expenditure-Commission-Documents produced-Direct nexus between commission paid and income generated-Even in the absence of any agreement with the commission agent, simply introducing or referring potential customers the commission payment is allowable as deduction.