https://www.taxtmi.com/caselaws?id=174269 A deduction for bad or doubtful debts is available only where the amount represents a proper debt arising in the ordinary course of business and capable of forming part of trading assets if recovered. On the facts, the write-off arose from mixed dealings, including agency advances, speculative losses, and monetary advances, so part of it could not be treated as money lent in a money-lending business. The later advances were found to be accommodation payments made to support a failing firm, not transactions in the regular course of business. The amount also failed as a business loss, because a substantial part had already been allowed earlier and the remaining advances were not proved to be incidental to business. The deduction was therefore rejected. en-us Fri, 11 Sep 1964 00:00:00 +0530 Mon, 05 Oct 2015 15:17:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174269 A deduction for bad or doubtful debts is available only where the amount represents a proper debt arising in the ordinary course of business and capable of forming part of trading assets if recovered. On the facts, the write-off arose from mixed dealings, including agency advances, speculative losses, and monetary advances, so part of it could not be treated as money lent in a money-lending business. The later advances were found to be accommodation payments made to support a failing firm, not transactions in the regular course of business. The amount also failed as a business loss, because a substantial part had already been allowed earlier and the remaining advances were not proved to be incidental to business. The deduction was therefore rejected. Case-Laws Income Tax Fri, 11 Sep 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174269