1934 (4) TMI 16 - HC - Income Tax

Summary

The High Court of Madras ruled that a surviving partner who succeeds to a business after two partners retire is not entitled to deduct the interest paid to the ex-partners under the Income Tax Act. The predecessors' capital becomes the successors' capital, and the succeeding partner is considered the former firm for all purposes. The Income Tax Commissioner was awarded costs of Rs. 250. The judgment was authored by Horace Owen Compton Beasley, Vepa Ramesam, and Sundaram Chetty, JJ.