https://www.taxtmi.com/caselaws?id=39177 A partnership deed that obliges the firm to pay fixed monthly sums to the widow of a deceased partner can divert those receipts at source, so the amounts never become the firm's own income. Because the obligation is absolute, enforceable, and not contingent on profits, the payments are treated as diverted by an overriding title rather than income first accruing to the firm and then being applied by it. The issue is therefore one of income computation, not a deduction for business expenditure. On these facts, the widows' payments were excluded from the firm's assessable income. en-us Wed, 14 Jul 1976 00:00:00 +0530 Tue, 13 Apr 2010 14:11:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39177 A partnership deed that obliges the firm to pay fixed monthly sums to the widow of a deceased partner can divert those receipts at source, so the amounts never become the firm's own income. Because the obligation is absolute, enforceable, and not contingent on profits, the payments are treated as diverted by an overriding title rather than income first accruing to the firm and then being applied by it. The issue is therefore one of income computation, not a deduction for business expenditure. On these facts, the widows' payments were excluded from the firm's assessable income. Case-Laws Income Tax Wed, 14 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39177