Court : Supreme Court of India
Reported in : AIR1953SC434; [1951]20ITR597(SC)
Mahajan, J.1. This is an appeal from the judgment and order of the High Court of Judicature at Madras dated 26th August, 1948, delivered on a reference made to it by the Income-tax Appellate Tribunal under S. 66(1), Income-tax Act, 1922, (Act 21 of 1922). 2. The respondent was the manager of a Hindu undivided family. Prior to 1931, he was carrying on a money-lending business in partnership with one Kasi Ayyar. The business of this partnership was discounted 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, 1...
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