K. A. RAMACHAR AND ANOTHER vs COMMISSIONER OF INCOME TAX, MADRAS.

The Supreme Court upheld the High Court's decision that profits assigned by a partner to his wife and daughters were to be included in the partner's total income under Section 16(1)(c) of the Income-tax Act, 1922. The Court clarified that the profits first accrued to the partner before being applied for payments to the family members, thus not diverting the income by an overriding title as claimed by the assessee. The ruling in Bijoy Singh Dudhuria's case was deemed inapplicable, affirming that the partner alone is entitled to the profits of the partnership.