https://www.taxtmi.com/caselaws?id=183536 Amounts paid by an assessee to discharge a joint and several borrowing, to the extent attributable to a co-borrower's default, were treated as deductible where the borrowing was undertaken for the assessee's business and reflected established commercial practice. The payment was regarded as incurred on grounds of commercial expediency in the ordinary course of business, and as a loss arising from the business transaction by which the funds were procured. It was not treated as a mere loss of borrowed capital used in the assessee's own business. The amount was therefore considered deductible as business expenditure, or alternatively as a trading loss. en-us Thu, 08 Mar 1956 00:00:00 +0530 Mon, 13 Jun 2016 17:32:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183536 Amounts paid by an assessee to discharge a joint and several borrowing, to the extent attributable to a co-borrower's default, were treated as deductible where the borrowing was undertaken for the assessee's business and reflected established commercial practice. The payment was regarded as incurred on grounds of commercial expediency in the ordinary course of business, and as a loss arising from the business transaction by which the funds were procured. It was not treated as a mere loss of borrowed capital used in the assessee's own business. The amount was therefore considered deductible as business expenditure, or alternatively as a trading loss. Case-Laws Income Tax Thu, 08 Mar 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183536