https://www.taxtmi.com/caselaws?id=6099 The dominant issue was whether 50% of a partner's 10% share in a firm, purportedly assigned to a trust, constituted income diverted by overriding title so as to be taxable in the trust's hands. The SC held that the arrangement was not a sub-partnership creating a special interest in the main partnership, but merely an assignment of profits; under s. 29(1) of the Partnership Act, the assignee acquires no interest in the firm and only a right to receive the assigned profits. Consequently, there was no diversion of income at source, rendering consideration of the alternative statutory provision unnecessary, and the assigned share was included in the partner's total income; the decision went in favour of the Revenue and against the assessee. en-us Tue, 10 Dec 2002 00:00:00 +0530 Fri, 26 Dec 2025 12:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6099 The dominant issue was whether 50% of a partner's 10% share in a firm, purportedly assigned to a trust, constituted income diverted by overriding title so as to be taxable in the trust's hands. The SC held that the arrangement was not a sub-partnership creating a special interest in the main partnership, but merely an assignment of profits; under s. 29(1) of the Partnership Act, the assignee acquires no interest in the firm and only a right to receive the assigned profits. Consequently, there was no diversion of income at source, rendering consideration of the alternative statutory provision unnecessary, and the assigned share was included in the partner's total income; the decision went in favour of the Revenue and against the assessee. Case-Laws Income Tax Tue, 10 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6099