https://www.taxtmi.com/caselaws?id=182845 Remission of a balance arising from compromise of a machinery sale transaction may qualify as a deductible bad or doubtful debt where the machinery was acquired for business use and its sale formed part of ordinary business activity rather than investment realisation. Contractual interest previously assessed as business income on the mercantile basis supports treatment of the subsequently remitted amount as a trading loss. The shortfall was deductible under the allowance for bad and doubtful debts relating to business income, because it arose from a bona fide trading transaction in the ordinary course of business. en-us Wed, 17 Mar 1954 00:00:00 +0530 Fri, 20 May 2016 18:48:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=182845 Remission of a balance arising from compromise of a machinery sale transaction may qualify as a deductible bad or doubtful debt where the machinery was acquired for business use and its sale formed part of ordinary business activity rather than investment realisation. Contractual interest previously assessed as business income on the mercantile basis supports treatment of the subsequently remitted amount as a trading loss. The shortfall was deductible under the allowance for bad and doubtful debts relating to business income, because it arose from a bona fide trading transaction in the ordinary course of business. Case-Laws Income Tax Wed, 17 Mar 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182845