Summarize the following court judgment. Appeals Nos. 142 and 143 of 1960. Appeals from the judgment and order dated July 21	 1955	 of the Madras High Court in C.R. No. 32 of 1952. G. section Pathak and Naunit Lal	 for the appellants. K. N. Rajagopal Sastri and D. Gupta for the respondent. January 10. The Judgment of the Court was delivered by HIDAYATULLAH J. These are two appeals by the legal representatives of one A. R. Rangachari	 who died during the pendency	 in the High Court at Madras	 of proceedings in a reference under section 66(1) of the Income tax Act made by the Income tax Appellate Tribunal	 Madras Bench. The following question was referred to the High Court for its decision: 382 " Whether the inclusion in the assessee 's total income of the profits settled by him on his wife and two daughters is justified in law ? " The High Court answered the question in the affirmative. The appeals have been filed with a certificate granted by the High court. Rangachari was one of five partners of a firm	 Messrs. Chari and Ram	 and held a six anna share in the profits and loss of the partnership. On September 22	 1947	 he executed three deeds of settlement	 which are marked Exts. A	 A 1 and A 2	 in favour of his wife		 a married adult daughter and a minor daughter. To each of them	 he assigned a fourth share of the profits of the firm payable to him (but not the losses)	 for a period of 8 years	 vesting the right in them to receive the said share of profits absolutely and exclusively and declaring the settlements to be irrevocable during the above period. It is not necessary to refer to the three documents	 because the terms are the same. A few clauses of the deed	 exhibit A	 may be quoted. After recitals which included the following: " Whereas the Settlor has settled upon his minor daughter	 Srimathi Meera Bai	 one fourth of his share of profits payable to him from the firm for a period of eight years; And whereas out of natural love and affection	 the Settlor is desirous of conferring upon the Beneficiary a similar portion of his share of profits from the firm "	 the deed goes on to say " Now this Indenture witnesseth as follows: 1. .The Settlor hereby assigns unto the Beneficiary all the rights of the Settlor in respect of one fourth of his share of profits in the firm (but not the losses) payable to him during a period of eight years commencing from the date hereof to be taken and enjoyed by the Beneficiary in absolute and exclusive right. 2. .The Settlor shall not have any manner of right or interest in the said one fourth share hereby settled and the right to receive from the firm one fourth of 383 the Settlor 's share during the said period of eight years shall exclusively vest in the Beneficiary. 3. .The Beneficiary shall be entitled directly to receive and collect from the firm the share of profits hereby transferred for the said period of eight years. . . . 8. This settlement shall be irrevocable. " For the assessment year 1947 48 corresponding to a previous year ending on April 13	 1947	 the profits due to Rangachari amounted to Rs. 86	491 13 0. This amount was credited to the account of Rangachari	 and Rs. 21	622 15 3	 being one fourth thereof	 were transferred to the accounts of each of the three disponees. In the same way	 the profits of the previous year ending April 13	 1948	 were disposed of. The assessee claimed that these amounts could not be included in his total income for purposes of assessment	 being excluded by reason of the third proviso to section 16(1)(c) of the Income tax Act. He also contended that the amount payable to his wife and two daughters never became his income	 being diverted by an overriding title	 and that the case was governed by the rule laid down by the Privy Council in Bijoy Singh Dudhuria vs Commissioner of Income tax	 Bengal (1). The assessee 's contentions were not accepted by the Income tax Officer	 and his appeals to the Appellate Assistant Commissioner and the Tribunal also failed. In so far as the assessment year 1947 48 was concerned	 the Income tax Officer held that the income had already accrued to the assessee	 because the deeds were executed five months after the close of the account year. He also held that the transfer to the minor daughter fell within section 16(3)	 as there was no adequate consideration for the transfer. With regard to the wife and married daughter	 he held that section 16(1)(c) was not applicable	 because what had been transferred was income first accruing to the assessee	 while section 16(1)(c) contemplated income which accrued to a person	 to whom the transfer was made. The same reasons (except the first) were given for rejecting the	 (1) 384 assessee 's contentions in respect of the other assessment year. It is not necessary to refer in detail to the decisions of the Appellate Assistant Commissioner	 the Tribunal 			and the High Court. The High Court in an elaborate judgment pointed out that section 16(1)(c) did not apply to these proceedings	 and that the third proviso was	 therefore	 not attracted. It also held that the income had accrued to the assessee in the first instance	 and had then been applied for payments under the deeds. This Court has recently decided three cases which have a direct bearing in this connection. In Provat Kumar Mitter vs Commissioner of Income tax	 West Bengal (1)	 the assessee had executed a deed of trust under which dividends from certain shares which continued to be his assets	 were transferred to his wife. It was held that the case did not fall within section 16(1)(c)	 and that the rule in Bijoy Singh Dudhuria 's case (2) also did not apply. In Tulsidas Kilachand vs The Commissioner of Income tax	 Bombay(1)	 the husband had created a trust of the shares	 constituting himself as the trustee to pay to the wife dividends from those shares for a period of seven years. It was held that the case was not governed by section 16(1)(c) but by section 16(3)(b). In The Commissioner of Income tax	 Bombay vs Sitaldas Tirathdas (4)	 the rule laid down by the Privy Council in Bijoy Singh Dudhuria 's case was considered along with the case of the Privy Council in P. C. Mullick vs Commissioner of Income tax	 Bengal (5)	 and it was pointed out that the rule in Bijoy Singh Dudhuria 's case (2) applied only to those cases where it could be said that by an overriding title the income was diverted in such a way as never to become the income of the assessee. These three cases	 in our opinion	 afford a complete answer to the contentions of the appellants. An examination of the deeds of settlement shows that the disponer had stated that from the profits " payable to him " certain amounts in specified shares were to be paid to his wife and two daughters. No (1) ; (3) ; (2) (4) ; 	 (5) 385 doubt	 the assessee in those deeds created a right in favour of the disponees to get the amounts direct from the firm	 of which he was a partner. The tenor of the documents shows that the profits were first to accrue to him and were then applied for payments to the disponees. Learned counsel for the appellants contended that what had been assigned was an actionable claim	 to wit	 the right to profits	 and therefore the profits were diverted	 before they accrued to the disponer. This	 in our opinion	 is neither in accord ance with the law of partnership nor with the facts as we have found on the record. Under the law of partnership	 it is the partner and the partner alone who is entitled to the profits. Astranger	 even if he were an assignee	 has not and cannot have a direct claim to the profits. 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. In view of the decision of this Court in Sitaldas Pirathdas 's case (1)	 it cannot be said that the profits were diverted by an overriding title before they accrued to Rangachari; and the rule in Bijoy Singh Dudhuria 's case (2) cannot be called in aid. For the above reasons	 we are in entire agreement with the High Court in the answer given and dismiss these appeals with costs. Appeals dismissed.

One Rangachari	 a partner of a partnership firm	 assigned by means of a deed of settlement a fourth share of the profits of the firm each to his wife	 a married adult daughter and a minor daughter for 8 years with the right to receive the said share of profits absolutely and exclusively from the firm. The question which arose before the High Court on a reference under section 66(1) of the Income tax Act was " Whether the inclusion in the assessee 's total income of the profits settled by him on his wife and two daughters is justified in law ?" The assessee Rangachari relying on the rule laid down by the Privy Council in Bijoy Singh Dudhuria 's case claimed that the amounts payable to his wife and two daughters never became his income	 being diverted by an overriding title and that those amounts could not be included in his total income for the purposes of assessment being excluded by reason of the third proviso to section 16(1)(c) of the Income tax Act. The High Court held that the third proviso was not attracted and that the income had accrued to the assessee in the first instance	 and had then been applied for payments under the deeds. On appeal with a certificate of the High Court: Held	 that the answer given by the High Court was correct. 381 An examination of the deeds of settlement showed that the disponer had stated that from the profits " payable to him " certain amounts in specified shares were to be paid to his wife and two daughters. No doubt	 the assessee in those deeds created a right in favour of the disponees to get the amounts direct from the firm	 of which he was a partner. The tenor of the document In	 showed that the profits were first to accrue to him and were then applied for payments to the disponees. Under the law of partnership	 it is the partner and the partner alone who is entitled to the profits. A stranger	 even if he were an assignee	 has not and cannot have a direct claim to the profits. 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. The rule in Bijoy Singh 's case was not applicable to this case	 and in view of the decision of this court in Sitaldas Tirathdas 's case it cannot be said that the profits were diverted by an overriding title before they accrued to the assessee. Provat Kumar Mitter vs Commissioner of Income tax	 West Bengal ; Tulsidas Kilachand vs The Commissioner of Income tax ; The Commissioner of Income tax	 Bombay vs Sitaldas Tirathdas ; 	 applied. Bijoy Singh Dudhuria vs Commissioner of Income tax	 Bengal 	 held inapplicable.