https://www.taxtmi.com/caselaws?id=24638 The High Court held that the Indian company, acting as an agent for a non-resident company, implicitly agreed to bear and pay the tax component on income remitted to the foreign company. The Court directed the Income-tax Officer to include the tax component in calculating the total income earned by the foreign company in India. The Court emphasized that statutory obligations cannot be avoided, even if not explicitly mentioned in the contract, and endorsed the grossing up method to determine the income earned by the foreign company. The decision favored the Revenue, requiring the adoption of the grossing up method for tax assessment. en-us Tue, 07 Jun 1988 00:00:00 +0530 Thu, 21 Jan 2010 13:40:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24638 The High Court held that the Indian company, acting as an agent for a non-resident company, implicitly agreed to bear and pay the tax component on income remitted to the foreign company. The Court directed the Income-tax Officer to include the tax component in calculating the total income earned by the foreign company in India. The Court emphasized that statutory obligations cannot be avoided, even if not explicitly mentioned in the contract, and endorsed the grossing up method to determine the income earned by the foreign company. The decision favored the Revenue, requiring the adoption of the grossing up method for tax assessment. Case-Laws Income Tax Tue, 07 Jun 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24638