https://www.taxtmi.com/caselaws?id=290311 Managing agents' entire business receipts remained taxable where an agreement merely required payment of part of those receipts to third parties and created no charge on the income source. The contractual obligation constituted an application of income after receipt, not diversion of income at source; therefore, the full amount formed part of taxable income under the Indian Income-tax Act, 1922. Payments to third parties were not deductible because no specific statutory deduction applied and the payments arose only from the contractual covenant. The Revenue's position prevailed, with the whole receipt assessed and no deduction allowed. en-us Tue, 11 Sep 1934 00:00:00 +0530 Sat, 19 Sep 2020 11:12:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290311 Managing agents' entire business receipts remained taxable where an agreement merely required payment of part of those receipts to third parties and created no charge on the income source. The contractual obligation constituted an application of income after receipt, not diversion of income at source; therefore, the full amount formed part of taxable income under the Indian Income-tax Act, 1922. Payments to third parties were not deductible because no specific statutory deduction applied and the payments arose only from the contractual covenant. The Revenue's position prevailed, with the whole receipt assessed and no deduction allowed. Case-Laws Income Tax Tue, 11 Sep 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290311