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2012 (12) TMI 86 - AT - Income TaxDisallowance made on account of payment made by the assessee to the spouse of its diseased partner – Held that:- Deed of partnership referred to in the supplementary partnership deed, the main logo and mark “GAGRATS” were assigned along with goodwill and all tangible and intangible rights to Mr. J.R. Gagrat and Mr. R.J. Gagrat jointly as their absolute and exclusive property - when the name, logo and mark belonged to Mr. J.R. Gagrat and Mr. R.J. Gagrat, there was no question of payment for their use to the wife of Mr. J.R. Gagrat especially in the event of his retirement - payment of Rs. 12 lakhs made to Mrs. M.J. Gagrat, therefore, was not a case of diversion of income by overriding title and it was only case of giving benefit to one individual who was neither a partner of the firm nor in any way related to the professional work of the firm - it was clearly a gratuitous payment made by the assessee firm which was not an allowable business expenditure u/s 37(1) – In favor of revenue
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