9911796707
TMI Blog1934 (5) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred is: Whether the ex-partner's share of the loss in the cotton trade which the petitioner had to bear by reason of the ex-partner being unable to meet his share of loss in the partnership business can be set off against the petitioner's other income, profits or gains as a loss of profits or gains within the meaning of Section 24 of the Act. The petitioner is the sole owner of a mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason of his taking over the indebtedness of Somasundaram Pillai for the whole of the loss sustained by the cotton business. He sought to set off against his profits and gains in the year of account; of the money lending firm the loss which he said he had sustained by reason of his having to take over the indebtedness of Somasundaram Pillai. This claim was rejected by the Income Tax authorities a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormer method of getting relief, it is quite clear that during the last year of the cotton business's life the books, viz., the separate ledger folio of Somasundaram Pillai, show that there was a loss in the firm and what Somasundaram Pillai's share of the loss was. There is nothing whatever in those books to show that the loss was the assessee's loss. His own loss is separately shown a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er lent any money to Somasundaram Pillai. If it had lent money to Somasundaram Pillai and that had proved to be a bad loan, then the assessee's money lending business could quite rightly have claimed to be allowed to set it off against the profits and gains of the money lending business. In fact this was nothing more than a lending by the money lending business of money to the cotton business ..... X X X X Extracts X X X X X X X X Extracts X X X X
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