1985 (7) TMI 2 - SUPREME COURT

Assessee succeeded to the business of the earlier firm - held that if a business along with its assets and liabilities were transferred by one owner to another, the debt so transferred is entitled to the same treatment in the hands of the successor. Therefore if the debt was taken into account for computation of the income of the predecessor assessee only and has been subsequently written off by the successor assessee, the assessee would still be entitled to the deduction of bad debt.