1968 (2) TMI 10

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....ney-lending business in Rangoon and Colombo. On February 14, 1957, there was a partition at which the assets in respect of Rangoon and headquarters business were divided, and on March 31, 1957, there was a further partition in respect of the Colombo business. The assessee's total share at the partition was valued at Rs. 4,60,779 which included advances to individuals amounting to Rs. 1,36,209. Moieties in three immovable properties were among the assets which fell to his share. The first item was sold on August 29, 1958, and the second on January 9, 1959. The third item was a site at Rangoon a part of which was sold. The bulk of the first item was purchased by the joint family in settlement of a book debt in the course of its money-lending ....

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....The profit received on sale of sale properties has gone to reduce the open debit balance in the money-lending account against kadai. Actually the income from the properties as well as the sale proceeds have been used in the money-lending business. The Tribunal in appreciating these facts was alive to the position that what the assessee took as his share at the family partition constituted a capital asset. But it said by virtue of the ploughing back " the income therefrom into advances to inams and other money-lending activities, it can be definitely said that the assessee had made these assets as part of his money-lending business ". Though the Tribunal referred only to the ploughing back of the income, in the context, it appears the omissi....