https://www.taxtmi.com/caselaws?id=276117 On the construction of a managing agency agreement, excess profits tax payable by the company was held deductible in computing annual net profits for commission purposes. The agreement fixed commission by reference to net profits but contained no express provision excluding tax on profits. The Court treated excess profits tax as distinct from income-tax in a profit-sharing context and applied the commercial basis of ascertaining divisible profits, observing that such profits are ordinarily determined after deducting tax the company cannot retain. In the absence of an express contractual term to the contrary, the tax was required to be deducted and the issue was answered in favour of deduction. en-us Mon, 26 Jul 1943 00:00:00 +0630 Tue, 30 Oct 2018 14:17:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276117 On the construction of a managing agency agreement, excess profits tax payable by the company was held deductible in computing annual net profits for commission purposes. The agreement fixed commission by reference to net profits but contained no express provision excluding tax on profits. The Court treated excess profits tax as distinct from income-tax in a profit-sharing context and applied the commercial basis of ascertaining divisible profits, observing that such profits are ordinarily determined after deducting tax the company cannot retain. In the absence of an express contractual term to the contrary, the tax was required to be deducted and the issue was answered in favour of deduction. Case-Laws Income Tax Mon, 26 Jul 1943 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=276117