https://www.taxtmi.com/caselaws?id=181386 A payment made under a guarantee given in the course of money-lending business was treated as a business loss, even though it did not comfortably fall within the deduction for expenditure laid out wholly and exclusively for business. The liability arose from the ordinary lending operations of the assessee and from the customary practice among Nattukottai Chettiars of guaranteeing one another's borrowings to continue the lending activity. On that basis, the amount had to be taken into account in computing the true profits of the business, notwithstanding the absence of a specific bad-debt provision before the 1939 amendment. The deduction was therefore allowed as a business loss. en-us Fri, 22 Feb 1946 00:00:00 +0530 Sat, 16 Apr 2016 10:29:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=181386 A payment made under a guarantee given in the course of money-lending business was treated as a business loss, even though it did not comfortably fall within the deduction for expenditure laid out wholly and exclusively for business. The liability arose from the ordinary lending operations of the assessee and from the customary practice among Nattukottai Chettiars of guaranteeing one another's borrowings to continue the lending activity. On that basis, the amount had to be taken into account in computing the true profits of the business, notwithstanding the absence of a specific bad-debt provision before the 1939 amendment. The deduction was therefore allowed as a business loss. Case-Laws Income Tax Fri, 22 Feb 1946 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=181386