https://www.taxtmi.com/caselaws?id=64594 A payment made under a solitary corporate guarantee was held not deductible as a bad debt under section 36(1)(vii) read with section 36(2), nor as a business loss. The claim failed because the guarantee was not established as part of the assessee's ordinary business or any regular guarantee-financing activity, the amount had not been taken into account in computing income, and the transaction did not fall within the banking or money-lending exception. In the absence of commission, consideration, or a sufficiently close business nexus, the sum paid under the guarantee was treated as outside deductible business expenditure. en-us Thu, 11 Mar 2004 00:00:00 +0530 Tue, 08 Feb 2011 18:02:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64594 A payment made under a solitary corporate guarantee was held not deductible as a bad debt under section 36(1)(vii) read with section 36(2), nor as a business loss. The claim failed because the guarantee was not established as part of the assessee's ordinary business or any regular guarantee-financing activity, the amount had not been taken into account in computing income, and the transaction did not fall within the banking or money-lending exception. In the absence of commission, consideration, or a sufficiently close business nexus, the sum paid under the guarantee was treated as outside deductible business expenditure. Case-Laws Income Tax Thu, 11 Mar 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64594