THE COMMISSIONER OF INCOME-TAX, BOMBAY CITY II vs SHRI SITALDAS TIRATHDAS

The Supreme Court ruled that maintenance payments to a wife and children under a consent decree are not deductible from the total income for income tax purposes under the Income-tax Act. The Court established that deductions are permissible only when income is diverted by an overriding title before it reaches the assessee, not when the obligation arises after the income has been received. The appeal was dismissed, affirming the High Court's decision that the amounts paid as maintenance were not deductible.