https://www.taxtmi.com/caselaws?id=6686 Accrued contractual commission retained by the payer to discharge a third party debt constitutes income accrued to the recipient: the retention operated as application of income after accrual under constructive payment and set off principles, and therefore was taxable. The amount so applied discharged an obligation incurred to obtain the sole selling agency and accordingly formed part of the cost of acquiring an enduring business advantage; it was held to be capital expenditure and not a deductible revenue expense under the relevant income tax provision. Both reference questions resolved for the Revenue. en-us Wed, 16 Feb 1966 00:00:00 +0530 Mon, 07 Dec 2020 16:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6686 Accrued contractual commission retained by the payer to discharge a third party debt constitutes income accrued to the recipient: the retention operated as application of income after accrual under constructive payment and set off principles, and therefore was taxable. The amount so applied discharged an obligation incurred to obtain the sole selling agency and accordingly formed part of the cost of acquiring an enduring business advantage; it was held to be capital expenditure and not a deductible revenue expense under the relevant income tax provision. Both reference questions resolved for the Revenue. Case-Laws Income Tax Wed, 16 Feb 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6686