https://www.taxtmi.com/caselaws?id=64948 An international airline's commission for collecting foreign travel tax was held not to fall within the treaty exemption for profits from the operation of aircraft in international traffic, because the tax was collected as an agent for the Government and the commission arose from a separate collection activity, not from fare or ticket earnings. The assessee's cash-system accounting did not prevent taxation of Indian-source accrued income, since non-resident income accruing in India remains assessable on accrual basis. The claim for deduction of payments to an outside agency for collection-related services was also rejected because the expenditure was not shown to relate to foreign travel tax collection. en-us Tue, 28 Aug 1990 00:00:00 +0530 Fri, 11 Feb 2011 13:03:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64948 An international airline's commission for collecting foreign travel tax was held not to fall within the treaty exemption for profits from the operation of aircraft in international traffic, because the tax was collected as an agent for the Government and the commission arose from a separate collection activity, not from fare or ticket earnings. The assessee's cash-system accounting did not prevent taxation of Indian-source accrued income, since non-resident income accruing in India remains assessable on accrual basis. The claim for deduction of payments to an outside agency for collection-related services was also rejected because the expenditure was not shown to relate to foreign travel tax collection. Case-Laws Income Tax Tue, 28 Aug 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64948