The assessee claimed the amount paid to retiring partner as per the provision in partnership deed as diversion of income at source by overriding title. Assessing Officer denied claim of assessee Tribunal allowed said claim. Order of Tribunal is affirmed by the High Court. Followed CIT v. Crawford Bayley & Co (1977) 106 ITR 884 (Bom)(HC)
PCIT v. Wadia Ghandy & Co(2023) 155 taxmann.com 228 (Bom)(HC) Editorial: PCIT v. Wadia Ghandy & Co. (2023) 295 Taxman 229 (SC). Availed of benefit under Direct Tax Vivad Se Vishwas Act, 2020, SLP of Revenue dismissed as infructuous.
S. 37(1) : Business expenditure-Amount paid to retiring partner as per the provision in partnership deed-Diversion of income at source by overriding title-Allowable as deduction. [S. 4]