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2004 (8) TMI 55 - HC - Income TaxPayment made to a retiring partner over and above his capital - - we find that the respondent had sold the plots worth Rs. 5,69,364.93 during the relevant assessment year and the profit therefrom was distributed amongst the existing partners, and Smt. Savitri Devi and Shri Jai Kishan Sharma were paid aggregate amount of Rs. 62,865 as per agreement/ release deed executed on October 6, 1975. Thus, the sum of Rs. 62,865 representing the interest of the heirs of the erstwhile partner in respect of the share in the firm, which has been utilised by the respondent after their retirement and in view of section 37 of the Indian Partnership Act, 1932, they were entitled for the said amount. It created an overriding title. Thus, the said amount had rightly been allowed by the Tribunal.
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