Payment made to legal heirs of deceased partner is admissible expenditure

Advertisement Pr. CIT Vs Wadia Ghandy & Co. (Bombay High Court) The assessee paid certain amount to a retired partner on the basis of the provisions made in the partnership deed. The deed provided that the partner whose share is determined on account of resignation, retirement or death, shall also be paid by the continuing partners of the firm, a sum equivalent to one and a half times the share of the profits and remuneration received by him in the last accounting year immediately preceding the date of determination of his share. This was primarily based on the premise that the partner ...