https://www.taxtmi.com/caselaws?id=7504 Profits from a partner's later business were treated as diverted at source to the firm where the partnership deed required profits from any new business commenced without the other partners' written consent to belong to the firm. The decisive distinction is between diversion by an overriding obligation before income accrues to the assessee and subsequent application of income after accrual. Because the deed prevented the profits from becoming the partner's real income, they were not taxable in the partner's hands. The profits were assessable in the firm's hands, and no alternative deduction claim remained after that conclusion. en-us Tue, 08 Oct 1968 00:00:00 +0530 Fri, 20 Feb 2009 18:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7504 Profits from a partner's later business were treated as diverted at source to the firm where the partnership deed required profits from any new business commenced without the other partners' written consent to belong to the firm. The decisive distinction is between diversion by an overriding obligation before income accrues to the assessee and subsequent application of income after accrual. Because the deed prevented the profits from becoming the partner's real income, they were not taxable in the partner's hands. The profits were assessable in the firm's hands, and no alternative deduction claim remained after that conclusion. Case-Laws Income Tax Tue, 08 Oct 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7504