https://www.taxtmi.com/caselaws?id=24583 The court held that the 25% share of profit paid to Mrs. Margaret Pinto was not taxable as a diversion of income by overriding title. It recognized her pre-existing rights in the partnership, concluding that the payment was not necessary for carrying on the business. The court upheld that Mrs. Pinto's heirs could claim the amount after her death, rejecting the Revenue's arguments against the enforceability of the contract and the notice of severance. Ultimately, the court ruled in favor of Mrs. Pinto, affirming that the payment was deductible in computing the total income of the assessee. en-us Fri, 12 Aug 1988 00:00:00 +0530 Thu, 21 Jan 2010 10:27:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24583 The court held that the 25% share of profit paid to Mrs. Margaret Pinto was not taxable as a diversion of income by overriding title. It recognized her pre-existing rights in the partnership, concluding that the payment was not necessary for carrying on the business. The court upheld that Mrs. Pinto's heirs could claim the amount after her death, rejecting the Revenue's arguments against the enforceability of the contract and the notice of severance. Ultimately, the court ruled in favor of Mrs. Pinto, affirming that the payment was deductible in computing the total income of the assessee. Case-Laws Income Tax Fri, 12 Aug 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24583