whether expenditure
laid out for purposes of business-Payment whether under
overriding title-Tribunal's finding of fact that
compensation was not paid ... diverted before it reached the
respondent by virtue of an overriding title.
HELD : (i) It is well-established that the High Court
important in deciding the question whether there is any diversion by overriding title. So also the learned standing counsel submitted that the decision ... molasses storage tank would amount to diversion of income by overriding title. According to the learned standing counsel after the molasses storage tank was constructed
received by the
assessee is diverted at the source by overriding title and,
therefore, cannot be considered as income of the assessee. In
support ... submitted that
there was no diversion of income at source by overriding title and
it was application of funds as it was part
considered as diversion of their income from properties by
an overriding title. It may be mentioned that the income of
the assessees consisted of income ... specific
overriding claim in respect of any particular income. The
Tribunal came to the conclusion that there was no overriding
title or diversion of income
source diverted and ceased to be his income, because of the overriding title created in his daughter. The Income-tax Officer held that, though ... overriding charge, then there can be no doubt that there would be created in favour of the charge-holder such an overriding or superior title
that bye-law should be treated as a diversion by an overriding title and not as an appropriation of profits. The assessee relied ... under the bye-laws it is not a diversion by any overriding title and that the decision in Poona Electric Supply Co. Ltd. v. Commissioner
case of diversion of income by an overriding title but only that of application of income after it has accrued to the assessed ... into play only where diversion of income was made by an
overriding title at the source before it became the income of the transferor
voluntarily. The bank or any other person did not have any overriding title to the receipt. The learned Assessing Officer held that capital gain ... taken by a third party had acted in exercise of the overriding title in its favour. Before the learned CIT (Appeals) the assessee before
case of diversion of income at source by overriding title, nor can be said that the amount so transferred to the reserve fund ... fund, and therefore, it also amounts to diversion of income by overriding title which never becomes a part of assessee's profits which
view that there is no diversion of income by overriding title, nor the amount set apart can be claimed as expenditure, and it cannot also ... income of the assessee at all and was diverted by overriding title by virtue of statutory obligation imposed on it and since
