https://www.taxtmi.com/caselaws?id=28302 In tax classification disputes, the character of a payment is determined by the substance of the collaboration agreement and its commercial effect, not by the label used by the parties. Where the arrangement involved drawings, specifications, training, consultancy, technical information, patent licences, and later improvements, the periodic sales-linked and service-related payments were treated as royalties and fees for technical services rather than commission. The recipient Indian company was also accepted as an Indian concern on the material before the Court. As a result, the receipts were regarded as excludible in computing chargeable profits under the relevant surtax exemption provisions. en-us Tue, 17 Aug 1982 00:00:00 +0530 Sat, 20 Feb 2010 12:30:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28302 In tax classification disputes, the character of a payment is determined by the substance of the collaboration agreement and its commercial effect, not by the label used by the parties. Where the arrangement involved drawings, specifications, training, consultancy, technical information, patent licences, and later improvements, the periodic sales-linked and service-related payments were treated as royalties and fees for technical services rather than commission. The recipient Indian company was also accepted as an Indian concern on the material before the Court. As a result, the receipts were regarded as excludible in computing chargeable profits under the relevant surtax exemption provisions. Case-Laws Income Tax Tue, 17 Aug 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28302