1970 (7) TMI 12

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e stated by the Appellate Tribunal under section 66(1) of the Indian Income-tax Act, 1922, hereinafter referred to as the Act, on the following question : " Whether the amount of Rs. 39,302 which was found due on account of interest charged from Jagannath, working partner, and which was written off because it could not be recovered, can be allowed as a deduction from the total income of the pre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ear 2011-2012. The amount consisted of the following two items : (i) Rs. 55,242, on account of excess drawings and losses during the period Samvat 2000 to Samvat 2012 ; and (ii) Rs. 39,302, on account of interest charged during the said period. At the end of the relevant previous year the assessee wrote off the entire sum of Rs. 94,544 and in the assessment for the assessment year under reference,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....i) of the Act. As already stated, the firm used to carry on business in arhat as well as in gur and shakkar. The amount in question cannot, therefore, be regarded as a trading debt. Moreover, the assessee-firm, which is a successor to the original firm of nine partners, took over the business with all its assets and liabilities which constituted the consideration for such take over. That being ....