https://www.taxtmi.com/caselaws?id=38002 Salary paid under a tax-free arrangement with an employer is assessable on its grossed-up value, because income-tax law looks to the income as earned and received rather than to any illegality alleged in the payment arrangement. On that basis, the tax element borne by the employer is added to determine the assessable salary, and the employee is not entitled to a further credit merely because the amount actually received was net of tax. The tax treatment remains unchanged even if the underlying arrangement is said to offend company law. The assessment on the grossed-up salary basis was therefore sustained. en-us Thu, 13 Apr 1978 00:00:00 +0530 Fri, 02 Apr 2010 14:38:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38002 Salary paid under a tax-free arrangement with an employer is assessable on its grossed-up value, because income-tax law looks to the income as earned and received rather than to any illegality alleged in the payment arrangement. On that basis, the tax element borne by the employer is added to determine the assessable salary, and the employee is not entitled to a further credit merely because the amount actually received was net of tax. The tax treatment remains unchanged even if the underlying arrangement is said to offend company law. The assessment on the grossed-up salary basis was therefore sustained. Case-Laws Income Tax Thu, 13 Apr 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38002