Payment to retired partner amounts to diversion of income at source by overriding title

Deloitte Haskins & Sells Vs ACIT (ITAT Delhi) Held that deduction from income claimed for payment made to a retired partners allowable as it amount to a diversion of income at source by overriding title. Facts- Assessee’s claim of deduction amounting to Rs.1,37,75,514/- paid to retired partners, claimed on the ground that the amount represented diversion by overriding title, was rejected by the Assessing officer; and the amount was added to assessee’s income. Aggrieved, the assessee filed appeal in the office of Ld. CIT(A). CIT(A) confirmed the addition. Being aggrieved, the present ap...