https://www.taxtmi.com/caselaws?id=180092 Amounts paid under a joint borrowing, including recovery expenses against a co-borrower, were not allowable as a bad debt, business loss, or business expenditure. The payments did not qualify as expenditure laid out wholly and exclusively for the business, because they were not made in the relevant accounting year and were not incurred for the assessee's trading operations. The co-borrower's liability arose by operation of law after discharge of the joint debt, so it was not a trading debt connected with the bookselling business. The loss was treated as capital in nature and too remote from the trade to be deductible; the broader allowance recognised in money-lending cases was confined to those special facts. en-us Thu, 17 Nov 1949 00:00:00 +0530 Wed, 16 Mar 2016 14:29:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180092 Amounts paid under a joint borrowing, including recovery expenses against a co-borrower, were not allowable as a bad debt, business loss, or business expenditure. The payments did not qualify as expenditure laid out wholly and exclusively for the business, because they were not made in the relevant accounting year and were not incurred for the assessee's trading operations. The co-borrower's liability arose by operation of law after discharge of the joint debt, so it was not a trading debt connected with the bookselling business. The loss was treated as capital in nature and too remote from the trade to be deductible; the broader allowance recognised in money-lending cases was confined to those special facts. Case-Laws Income Tax Thu, 17 Nov 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180092