Deductibility of remitted interest: banks may treat voluntary write offs as trading losses where commercially expedient.

Voluntary remission or write off of interest by nationalised banks and public financial institutions, undertaken in the course of ordinary lending business as a bona fide commercial expedient to protect recoveries or avert larger losses, may be regarded as a trading loss incidental to their business and allowed as a deduction; each case must be decided on its own merits.

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