https://www.taxtmi.com/caselaws?id=169450 A binding dissolution deed that creates an enforceable obligation in favour of a third party can divert income at source before it becomes the partners' real income. On that reasoning, the managing agency commission payable to Bhagirathibai never formed part of the partners' taxable income, because the amount was allocated under the deed before accrual to the assessees. The arrangement was treated as a diversion of income by overriding title rather than a mere application of income after receipt, so the amount had to be excluded in computing the partners' income. en-us Mon, 11 Feb 1957 00:00:00 +0530 Tue, 21 Apr 2015 11:50:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169450 A binding dissolution deed that creates an enforceable obligation in favour of a third party can divert income at source before it becomes the partners' real income. On that reasoning, the managing agency commission payable to Bhagirathibai never formed part of the partners' taxable income, because the amount was allocated under the deed before accrual to the assessees. The arrangement was treated as a diversion of income by overriding title rather than a mere application of income after receipt, so the amount had to be excluded in computing the partners' income. Case-Laws Income Tax Mon, 11 Feb 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=169450