TMI Blog2019 (2) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... not been billed for the work already done. In similar circumstances, the courts have held that payment to the partner would amount to diversion of income at source by overriding title. No substantial question of law arises for our consideration. The income tax appeal is dismissed. - INCOME TAX APPEAL No. 1696 of 2016 - - - Dated:- 12-2-2019 - AKIL KURESHI B. P. COLABAWALLA, JJ. Mr. Suresh Kumar for the Appellant. P.C. : 1 This appeal is filed by the Revenue challenging judgment of Income-tax Appellate Tribunal (for short Tribunal ). The appellant Revenue urges following question of law for our consideration:- Whether on the facts and the circumstances of the case and in law, the ITAT was justified in allowing the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fees received by it in the year in which the bills would be raised. This was also including capital gains on the sale of the immovable properties, without claiming any depreciation in those years in respect of which payments to the outgoing partner were made. 3. The assessing officer did not accept the stand and disallowed the expenditure. The assessee carried the matter in appeal. Tribunal by impugned judgment referred to and relied upon the earlier decisions on the point to accept the assessee's stand. It appears that the assessee had taken both the grounds namely, that the expenditure was made to discharge the obligation undertaken by the firm as per the relevant clause of the partnership agreement and further that essentially th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... title in favour of the ex-partner/s or their heirs/executors by virtue of the partnership deed. 4. We find that the impugned order of the Tribunal has dismissed the Revenue's appeal by inter alia recording the fact that in the order of the Commissioner of Income Tax (Appeals) (CIT A)) had only followed the consistent view of the Tribunal in the assessee's own case for the earlier Assessment years. In fact, the impugned order of the Tribunal has further placed reliance upon the decision of this Court in Income Tax Appeal No.860 of 2009 dated 19/6/2009 rendered in the respondents-assessee's own case as well as decision of this Court in the case of CIT vs. Mulla and Mulla and Craigie, Blunt and Caroe, (1991) 190 ITR 198 whil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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