1945 (11) TMI 14

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... manager of a joint Hindu trading family, which deals in timber, iron and hardware and 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 exec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the validity of this course, but it was upheld by the Income Tax authorities 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 :- "Wh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....;s business, but were made in the course of the partnership business. 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 the....