https://www.taxtmi.com/caselaws?id=284162 Bad debts carried in the books of a business allotted intact on partition of a Hindu undivided family remained deductible when the business was continued by the successor partnership without loss of identity. The court treated the change as a transfer of ownership by operation of law, not a discontinuance or extinction of the business. Because the same business continued as a going concern, the debts retained their character as trade debts and did not become capital assets in the hands of the successor firm. The deduction for bad debts was therefore allowed under section 10(2)(xi) of the Indian Income-tax Act, 1922. en-us Tue, 27 Feb 1962 00:00:00 +0530 Mon, 04 Nov 2019 17:22:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=284162 Bad debts carried in the books of a business allotted intact on partition of a Hindu undivided family remained deductible when the business was continued by the successor partnership without loss of identity. The court treated the change as a transfer of ownership by operation of law, not a discontinuance or extinction of the business. Because the same business continued as a going concern, the debts retained their character as trade debts and did not become capital assets in the hands of the successor firm. The deduction for bad debts was therefore allowed under section 10(2)(xi) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Tue, 27 Feb 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=284162