https://www.taxtmi.com/caselaws?id=793555 Royalty paid to a non-resident under a treaty taxing only amounts actually "paid" was taxable only to the extent finally retained after a bona fide repayment made under an Advance Pricing Agreement. The agreement fixed a lower arm's length royalty and required the excess to be repaid to the Indian associated enterprise, with corresponding income reflected in the enterprise's modified return. The transfer pricing provisions invoked by the Revenue did not justify taxing the gross amount originally received, and the real income principle supported taxation only on the net amount retained. en-us Tue, 16 Jun 2026 00:00:00 +0530 Thu, 18 Jun 2026 08:45:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793555 Royalty paid to a non-resident under a treaty taxing only amounts actually "paid" was taxable only to the extent finally retained after a bona fide repayment made under an Advance Pricing Agreement. The agreement fixed a lower arm's length royalty and required the excess to be repaid to the Indian associated enterprise, with corresponding income reflected in the enterprise's modified return. The transfer pricing provisions invoked by the Revenue did not justify taxing the gross amount originally received, and the real income principle supported taxation only on the net amount retained. Case-Laws Income Tax Tue, 16 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793555