DERBYSHIRE, C. J. - I am of the opinion that the losses here claimed are losses of the old business. They were losses incurred because of dealings of the old firm and not of the new firm. For that reason they are not properly allowable against the income, profits and gains of the new firm.
It has been contended that these are assets taken over from the old firm by the new firm. They are debts, and in so far as they have a value that value when received may become part of the capital of the new firm for earning purposes. Until then they are assets of doubtful value. In so far as smaller sums of nominal debts are realised, it seems to me that losses so sustained are losses of capital and not trading losses.
In my opinion this rule must be discharged with costs, the hearing fee being assessed at three gold mohurs.
NASIM ALI, J. - I agree.