https://www.taxtmi.com/caselaws?id=38063 The court ruled in favor of the assessee, emphasizing the importance of accurately interpreting partnership agreement clauses. It held that the payment to the outgoing partner did not violate the partnership agreement, rejecting the Tribunal's finding. The court also disagreed with the disallowance of a deductible allowance for the payment, stating it was not a diversion of income. It directed a rehearing to consider the firm's accounting system. Ultimately, the judgment favored the assessee over the department, stressing adherence to partnership terms and accounting practices. en-us Thu, 06 Apr 1978 00:00:00 +0530 Sat, 03 Apr 2010 10:04:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38063 The court ruled in favor of the assessee, emphasizing the importance of accurately interpreting partnership agreement clauses. It held that the payment to the outgoing partner did not violate the partnership agreement, rejecting the Tribunal's finding. The court also disagreed with the disallowance of a deductible allowance for the payment, stating it was not a diversion of income. It directed a rehearing to consider the firm's accounting system. Ultimately, the judgment favored the assessee over the department, stressing adherence to partnership terms and accounting practices. Case-Laws Income Tax Thu, 06 Apr 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38063