https://www.taxtmi.com/caselaws?id=290311 Where managing agents receive business receipts and are only under a contractual covenant to pay part of those sums to third parties, the entire receipt remains taxable income because no charge is created on the source itself. The article distinguishes cases involving a true charge on property and applies the principle that an obligation to apply income in a particular way does not reduce assessable income. It also states that, absent a specific statutory allowance, payments made to third parties under such a covenant are not deductible as admissible outgoings. On that basis, the receipt was brought to tax in full and no deduction was 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 Where managing agents receive business receipts and are only under a contractual covenant to pay part of those sums to third parties, the entire receipt remains taxable income because no charge is created on the source itself. The article distinguishes cases involving a true charge on property and applies the principle that an obligation to apply income in a particular way does not reduce assessable income. It also states that, absent a specific statutory allowance, payments made to third parties under such a covenant are not deductible as admissible outgoings. On that basis, the receipt was brought to tax in full and no deduction was allowed. Case-Laws Income Tax Tue, 11 Sep 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290311