TaxTMI 
TaxTMI 
1935 (5) TMI 29
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....one of three partners in a moneylending business S. P. K, A. A. M. at Colombo in which he had a 63/4 share. On May 31, 1930, he severed his . connection with that firm, and an account was taken of the amounts due to him by way of capital, surplus capital, share of profit and interest thereon : and a sum of ₹ 2,09,670 was found due to him which included ₹ 23,500, share of profits from October 26, 1926, to May 31, 1930, and ₹ 38,305 interest on capital. The ₹ 23,500 was paid to him by hundis drawn by the remaining partners and cashed at Colombo. The ₹ 38,305 together with the greater part of the capital sum due was remitted to him in Madras, by the promissory note of a debtor of the: firm made out in the responde....
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....immaterial whether the company originally possessed them by way of capital or profits. The liquidator may apply sums earned as profits in paying capital liabilities and capital assets in paying revenue liabilities. What he distributes is a lump sum, and no reconstruction into a division of capital and profits is necessary or in many cases possible. The position in respect of a partnership is different. The profits are the profits of the partners, joint in the first instance, and if the appropriate statute so provides assessable as joint : but in fact representing an interest of each partner : and as soon as declared constituting an obligation from the firm to each partner. If the Ceylon ordinance be analogous to the English Act there would ....