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

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