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1961 (1) TMI 8 - SC - Income TaxWhether the inclusion in the assessee's total income of the profits settled by him on his wife and two daughters is justified in law ? Held that:- By the deeds in question, the assessee merely allowed a payment to his wife and daughters to constitute a valid discharge in favour of the firm ; but what was paid was, in law, a portion of his profits, or, in other words, his income. A glance at the account books of, the firm, Messrs. Chari and Ram, clearly shows that the amounts were first credited in the khata of Rangachari and then under his directions were transferred from his khata to those of his wife and daughters. The dispositions, therefore, were, in law and in fact, portions of the income of Rangachari, after the income had accrued to him and tax was payable by him at the point of accrual. Thus it cannot be said that the profits were diverted by an overriding title before they accrued to Rangachari. Appeals dismissed.
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