https://www.taxtmi.com/caselaws?id=183676 A bad debt deduction was denied where surrounding circumstances showed that the advances were not made in the course of the assessee's money-lending business. Continuous dealings, absence of security, the character of the running accounts, and long treatment of the sums as outstanding balances supported that conclusion. The debts were also held to have become bad before the relevant accounting year because they remained unpaid for many years, no interest was charged, no recovery steps were taken, and there was no real prospect of recovery during the year. A claim for bad debt is allowable only if the assessee proves the debt was good at the start of the year and became bad during that year. en-us Mon, 24 Sep 1962 00:00:00 +0530 Fri, 17 Jun 2016 18:01:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183676 A bad debt deduction was denied where surrounding circumstances showed that the advances were not made in the course of the assessee's money-lending business. Continuous dealings, absence of security, the character of the running accounts, and long treatment of the sums as outstanding balances supported that conclusion. The debts were also held to have become bad before the relevant accounting year because they remained unpaid for many years, no interest was charged, no recovery steps were taken, and there was no real prospect of recovery during the year. A claim for bad debt is allowable only if the assessee proves the debt was good at the start of the year and became bad during that year. Case-Laws Income Tax Mon, 24 Sep 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183676