https://www.taxtmi.com/caselaws?id=288866 On dissolution of a partnership, undrawn profits do not lose their character as profits merely because the firm has ended. The dissolution account only determines what is due to partners by way of capital and profits; it does not convert profits into capital. An outgoing partner remains entitled to receive his share of profits as profits, unlike a shareholder on winding up. Accordingly, the sum received as interest on capital employed in business was treated as profit and was assessable to tax under Section 4(2) of the Indian Income Tax Act, 1922. en-us Fri, 24 May 1935 00:00:00 +0530 Fri, 03 Jul 2020 18:17:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=288866 On dissolution of a partnership, undrawn profits do not lose their character as profits merely because the firm has ended. The dissolution account only determines what is due to partners by way of capital and profits; it does not convert profits into capital. An outgoing partner remains entitled to receive his share of profits as profits, unlike a shareholder on winding up. Accordingly, the sum received as interest on capital employed in business was treated as profit and was assessable to tax under Section 4(2) of the Indian Income Tax Act, 1922. Case-Laws Income Tax Fri, 24 May 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=288866