Dheeraj is correct. Firm and partners are two different "Persons" under the income tax act assessed separately. Thus once the income of firm is taxed at 30%. Then the share of Partner in the remaining proft (Distributable profit) ie 10% of Rs 70,000 will be exempt in the hands of partner.
What i can understand from your this reply is :
ONLY BEFORE TAX INCOME BE MADE EXEMPT FROM TAX...
SHARE IN THE TOTAL INCOME OF THE FIRM...
1 LAC IN UR EXAMPLE"
If you say share in the total income, then how can you take total income of the firm into consideration while calculation income of partner. Please note that in the given example 1lac is total income of the Firm which can never be added fully while calculating income of parter who enjoys only 10% share in the profits.
I Hope this clarifies the situation.. Thanks.