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 As per the theory of Taxation of Real Income, an important pillar of the taxing statue, only real income should be taxed, ie, the income which is accrued and an assessee should have the power to claim its right over that income. This view has been upheld by the Hon'ble Apex Court in the decision of CIT v A Raman & Co. (1968 AIR 49] M/s. Jetair Private Limited  All GSA agreements are negotiable agreements. The remuneration depends solely on what has been mutually agreed between the Principal and the Agent To prove this point, the appellant had even submitted, vide letter dated 16.08.2021, the agreements entered with All Nippon Airways Co. Ltd. and Air Seychelles Ltd wherein cost plus models were followed and no ORC Rate had been specifically provided for Commission rate in case of GSA agreements generally decreases as the turnover increases This is because the cost incurred by the agent does not increase proportionately to the increase in turnover, rather the agent achieves a cost advantage  The passenger turnover of Jet Airways (India) Private Limited was 53.71 times the combined turnover of all the other airlines with whom the appellant had executed a GSA Agreement and therefore the appellant could not afford to lose its major client  The letters exchanged between the appellant & Gulf Air Company G.S.C (submitted vide letter dated 27.09.2021) showed that even in 2004, the appellant had reduced the commission rate owing to its past relationship with the airline.

9. Further, it was pointed out that the commission rate in case of GSA agreements generally decreases when the turnover increases and this is because the cost incurred by the agent does not increase proportionately to the increase in turnover rather the agent achieves a cost advantage. Keeping this in mind, the assessee had entered into GSA agreement with Jet Airways (India) Private Limited, wherein both the parties had agreed that the ORC Rate would not exceed 1%. For the captioned assessment year Jot Airways (India) Private Limited has paid ORC @0.6% to the assessee which is well within the limits of 1%.