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TMI Blog1951 (10) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... nership with one Kasi Ayyar. The business of this partnership was discontinued except for the purpose of realisation of outstandings due to it. One of the outstandings was a debt due from the firm of Kadir Pillai Marakayar on a mortgage. A final decree was obtained against the said firm in the year 1940. In execution of that decree certain lands of the debtor were sold. On 11th September, 1942, a sum of Rs. 16,395-14-10 was due under the decree when the two partners decided to close the accounts of the partnership and in pursuance of that decision the outstandings were divided between them. On 12th September, 1942, the respondent entered a sum of Rs. 8,197, representing half of the said sum due from the debtor under the decree, in the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 10(2)(xi) of the Income-tax Act ? (2) Whether, on the facts and in the circumstances of the case, the assessee's claim to write off the sum of Rs. 5,880 towards his share of the irrecoverable portion of the decree debt in the assessment year is admissible under section 10(2)(xi) of the Income-tax Act ? The reference was answered in the affirmative by the High Court. It, however, granted a certificate to file an appeal to this Court. The only point to be decided in this appeal is whether, on the facts and in the circumstances under which the sum of Rs. 8,197 was dealt with by the respondent, it is a permissible deduction from his income under section 10(2)(xi) of the Income-tax Act in the assessment year. The High Court on e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w business. We are unable to uphold this contention. The Tribunal, on a consideration of the entries in the books of the partnership and of the assessee produced before it, reached the conclusion that the respondent had treated his share of the outstanding debt due under the decree as a part of his money-lending business and as a loan given by the assessee's money-lending business to the debtor. The learned Attorney-General strenuously contended that the entries in the books of account could not possibly support the conclusion reached by the Tribunal, and that there were no materials for reaching that finding. We are unable to agree. The entries are fully capable of the construction placed on them by the Assistant Commissioner and the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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