1960 (2) TMI 1 - SUPREME COURT

The respondent a partnership firm which, by an agreement was appointed the managing agent. The total commission was a sum of Rs. 3,09,114 accrued to such managing agent. At the oral request, the managing agent agreed to accept a sum of Rs. 1,00,000 only as its commission which was credited to the account of the managing agent. Assessee claimed Rs. 2,09,114 as deduction on account of surrender of income. Held that Rs. 2,09,114 to be accepted as deducible expenditure.