9911796707
TMI Blog1945 (11) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... runs a money-lending business. Before 1933 it carried on a separate money-lending business in partnership with one Chinni Veeraswami Chetti. This business was dissolved in 1933 and its assets were divided between the partners. As part of its share the family of the assessee received certain promissory notes executed by persons to whom the partnership had lent money. At the time of the dissolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities refused to recognize the validity of this course, but it was upheld by the Income Tax Appellate Tribunal, Madras Bench, in an order dated the 11th May 1944. At the instance of the commissioner of Income Tax the Tribunal has referred to this Court under the provisions of Section 66(1) the following question :- Whether on the facts and in the circumstances of the case, the sum of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is true that the money was actually lent by the partnership, but the loans were allotted to the family on the dissolution of the partnership and they became part of the assets of the family's own business. The promissory notes which were actually written off as irrecoverable were not the original promissory notes, but they were promissory notes which had been renewed by the borrowers in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts in that case do not appear to be on all fours with the facts in the present case and we do not regard it as being applicable. We reserve our opinion as to whether it should be followed by this Court until the question arises on exactly similar facts. We answer the question referred by stating that the sum of ₹ 8,855 is allowable as a deduction in the assessment for 1942-43 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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