https://www.taxtmi.com/caselaws?id=8740 Contractual payments to a State Government were treated as a diversion of profits by title paramount where the agreement created a charge on net profits before they reached the assessee in the commercial sense. Applying the distinction between income diverted at source and income merely applied after receipt, the specified amounts were held not to form part of taxable income. The same payments were also characterised as revenue expenditure incurred under the contractual arrangement and were therefore deductible in computing business income under the applicable income-tax provisions. en-us Tue, 04 Jan 1972 00:00:00 +0530 Wed, 03 Jun 2009 12:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8740 Contractual payments to a State Government were treated as a diversion of profits by title paramount where the agreement created a charge on net profits before they reached the assessee in the commercial sense. Applying the distinction between income diverted at source and income merely applied after receipt, the specified amounts were held not to form part of taxable income. The same payments were also characterised as revenue expenditure incurred under the contractual arrangement and were therefore deductible in computing business income under the applicable income-tax provisions. Case-Laws Income Tax Tue, 04 Jan 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8740