ARAVINDA PARAMILA WORKS vs COMMR. OF INCOME TAX

The Supreme Court addressed whether commission payments to foreign agents qualify as maintenance of an agency under Section 35B(1)(b)(iv) of the Income Tax Act, 1961. The Court held that such payments do not constitute maintenance of an agency as the assessee failed to demonstrate that an agency was established and maintained outside India. The High Court's ruling in favor of the Revenue was affirmed, denying the assessee's claim for a weighted deduction of Rs. 13,23,225/- for the assessment year 1981-82.