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1960 (10) TMI 99 - PUNJAB AND HARYANA HIGH COURTBusiness connection - profits or gains accrued or arose or could be deemed to have accrued or arisen to the non-resident on account of the business connection of the non-resident with the assessee - Relationship between the assessee and the non-resident fell within the meaning of the expression 'business connection' as used in section 42(1) of the Indian Income-tax Act - Held that:- These observations fully apply to the facts of the present cases, as I have already said. Here also the alleged agent is nothing more than a free-lance broker. He has not been appointed by the non-resident companies. He is not bound to canvass business for them. Whatever orders he canvasses are at his sweet will and if those orders are ultimately carried out, the non-resident companies give him a certain amount of commission, which varies from 1˝ per cent. to 2˝per cent. As a matter of fact, the entire sale transaction is completed outside the taxable territories. The only part of the transaction which takes place in the taxable territories is the canvassing by the alleged assessee agent for the goods of the non-resident companies. Such a connection, which is of a very loose nature and has no firm basis, cannot, in our opinion, be held to be “business connection” within the meaning of section 42(1) of the Act.
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