https://www.taxtmi.com/caselaws?id=126795 A debt is deductible as a bad debt only if it arises in the ordinary course of business, is incidental to that business, and is of revenue character, so that recovery would have augmented taxable profits. Advances made in the course of the assessee's financing business satisfied that test, and the related interest had already been treated as business income in earlier years. The irrecoverable amount was therefore allowable as a business bad debt under section 10(2)(xi) of the Income-tax Act, 1922, and the issue was decided against the revenue. en-us Mon, 06 Dec 1965 00:00:00 +0530 Thu, 10 Jan 2013 12:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=126795 A debt is deductible as a bad debt only if it arises in the ordinary course of business, is incidental to that business, and is of revenue character, so that recovery would have augmented taxable profits. Advances made in the course of the assessee's financing business satisfied that test, and the related interest had already been treated as business income in earlier years. The irrecoverable amount was therefore allowable as a business bad debt under section 10(2)(xi) of the Income-tax Act, 1922, and the issue was decided against the revenue. Case-Laws Income Tax Mon, 06 Dec 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=126795