SRINIVASAN J.

The assessee is a Hindu undivided family carrying on a money-lending business at Madras and at Muar in the Federated Malay States. Through its karta, the assessee was a partner in a firm, each of the partners of which had, under the terms of the partnership deed, to contribute a capital of Rs. 10, 000. The partnership deed further provided that the partners could advance moneys to the partnership to the extent necessary, which was to bear interest at 6 per cent. per annum. The money-lending business at Muar was remitting moneys from time to time by bank drafts. These drafts were endorsed in favour of the partnership firm, and the amounts were credited to the loan account of the assessee. These were treated as advances to the partnership. In respect of these advances the partnership firm paid interest, and this quantum of interest was taxed as income from the money-lending business of the assessee in the earlier assessment years The assessee had another account, a current account, with the firm. In this account were recorded amounts borrowed by the assessee. The firm, in its turn, charged interest on such borrowals, and the payment of this interest by the as