https://www.taxtmi.com/caselaws?id=173973 Where a royalty agreement stipulates payment free of Indian tax and requires the Indian agent to bear that tax, the recipient is entitled to the stated net royalty only after grossing up. The tax discharged by the agent is treated as an additional benefit forming part of the recipient's taxable income, so the assessable amount is the gross sum needed to leave the agreed royalty intact after tax. On that construction of the contract, the royalty had to be assessed on a grossed-up basis, and the assessment including tax borne by the agent was upheld. en-us Fri, 12 Jul 1963 00:00:00 +0530 Fri, 25 Sep 2015 16:48:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173973 Where a royalty agreement stipulates payment free of Indian tax and requires the Indian agent to bear that tax, the recipient is entitled to the stated net royalty only after grossing up. The tax discharged by the agent is treated as an additional benefit forming part of the recipient's taxable income, so the assessable amount is the gross sum needed to leave the agreed royalty intact after tax. On that construction of the contract, the royalty had to be assessed on a grossed-up basis, and the assessment including tax borne by the agent was upheld. Case-Laws Income Tax Fri, 12 Jul 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173973