https://www.taxtmi.com/caselaws?id=169638 A debt surrendered in a reconstruction scheme was not deductible as a bad debt where the evidence showed it was linked to managing agency activity, not an advance made in the ordinary course of the assessee's money-lending business. The surrounding circumstances, including the absence of interest and the fact that the surrender facilitated reconstruction and benefited shareholders by improving the value of their holdings, supported the finding that the advance lacked the character required for a bad debt claim. The question was answered against the assessees and in favour of the Revenue. en-us Thu, 23 Sep 1943 00:00:00 +0630 Tue, 28 Apr 2015 17:44:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169638 A debt surrendered in a reconstruction scheme was not deductible as a bad debt where the evidence showed it was linked to managing agency activity, not an advance made in the ordinary course of the assessee's money-lending business. The surrounding circumstances, including the absence of interest and the fact that the surrender facilitated reconstruction and benefited shareholders by improving the value of their holdings, supported the finding that the advance lacked the character required for a bad debt claim. The question was answered against the assessees and in favour of the Revenue. Case-Laws Income Tax Thu, 23 Sep 1943 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=169638