TMI Blog1970 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... was included in the total income of the respective years being revenue receipts - - - - - Dated:- 23-7-1970 - Judge(s) : R. S. PATHAK., T. P. MUKHERJEE. JUDGMENT The judgment of the court was delivered by T. P. MUKERJEE J.-This is a case 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rking partner. At the close of the Samvat year 2009-2010, Jagannath Prasad retired from the firm. At the time of retirement there was a debit balance in the capital account of Sri Jagannath Prasad which stood at Rs. 94,544 at the end of Samvat year 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of interest debited to his account. Nevertheless, it appears to us, the firm cannot claim the sum of Rs. 39,302 being the amount of interest debited to the account at the end of the relevant accounting year as bad debt under section 10(2)(xi) 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 rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee claimed a deduction of Rs. 53,694 being the amount written off, in computing the assessable profits. Beaumont C.J., who delivered the leading judgment of the Bench, observed that the debts due from the retiring partners were never revenue of the continuing firm ; they were capital sums and the loss could not be written off as against the profits of the year in which they were written off. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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