https://www.taxtmi.com/caselaws?id=19837 A valid gift of a partner's share can divest the donor of rights in partnership profits and losses even if the donees are not yet admitted as partners, so long as the deed shows absolute relinquishment of the transferred share. On that basis, the gifted portion is treated as passing to the donees as co-owners, and the income attributable to that share is diverted at source by an overriding title before it accrues to the donor. Mere credit of the full share in the donor's name in partnership accounts does not determine taxability. The gifted portion was therefore not assessable in the donor's hands. en-us Tue, 10 Aug 1993 00:00:00 +0530 Tue, 10 Nov 2009 11:35:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19837 A valid gift of a partner's share can divest the donor of rights in partnership profits and losses even if the donees are not yet admitted as partners, so long as the deed shows absolute relinquishment of the transferred share. On that basis, the gifted portion is treated as passing to the donees as co-owners, and the income attributable to that share is diverted at source by an overriding title before it accrues to the donor. Mere credit of the full share in the donor's name in partnership accounts does not determine taxability. The gifted portion was therefore not assessable in the donor's hands. Case-Laws Income Tax Tue, 10 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19837