ALUMINIUM CORPORATION OF INDIA LTD. vs COMMISSIONER OF INCOME-TAX, WEST BENGAL

The Supreme Court held that under Section 10(2)(xv) of the Income Tax Act, 1922, the commission paid to selling agents is deductible if it is laid out wholly and exclusively for business purposes. The Court found that the High Court had erred in its advisory jurisdiction under Section 66 by overlooking the terms of the agreement and the historical treatment of the commission as deductible. The Tribunal's decision to allow the deduction was upheld, emphasizing that the commission was indeed for business considerations despite sales being directly effected by the assessee.