https://www.taxtmi.com/caselaws?id=49489 Partnership profits first accrued to the partner and were then directed under settlement deeds to be paid to his wife and daughters, so the income remained taxable in his hands. The amounts were credited to the partner's account before transfer, showing that he had a right to the profits under partnership law and merely authorised payment to the beneficiaries as a valid discharge to the firm. As the arrangement did not create a diversion by an overriding title before accrual, the settled sums formed part of the assessee's total income. The proviso relating to transfers to spouse or children did not alter this result. en-us Tue, 10 Jan 1961 00:00:00 +0530 Mon, 23 Feb 2015 15:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49489 Partnership profits first accrued to the partner and were then directed under settlement deeds to be paid to his wife and daughters, so the income remained taxable in his hands. The amounts were credited to the partner's account before transfer, showing that he had a right to the profits under partnership law and merely authorised payment to the beneficiaries as a valid discharge to the firm. As the arrangement did not create a diversion by an overriding title before accrual, the settled sums formed part of the assessee's total income. The proviso relating to transfers to spouse or children did not alter this result. Case-Laws Income Tax Tue, 10 Jan 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49489