https://www.taxtmi.com/caselaws?id=331178 A loan advanced as part of business expediency, rather than as an investment, was treated as a business transaction, so the loss on sale or non-recovery of the actionable claim was allowable as a business loss in computing profits. The court accepted that the advance was made to protect the assessee from enforcement of its bank guarantee, and the treatment of interest on the advance as business income supported that character. The fact that the assessee was not ordinarily in the business of lending did not prevent the advance from being classified as a business loan. The separate issue of the year of allowance was treated as academic and not decided. en-us Tue, 09 Aug 2016 00:00:00 +0530 Tue, 16 Aug 2016 11:18:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331178 A loan advanced as part of business expediency, rather than as an investment, was treated as a business transaction, so the loss on sale or non-recovery of the actionable claim was allowable as a business loss in computing profits. The court accepted that the advance was made to protect the assessee from enforcement of its bank guarantee, and the treatment of interest on the advance as business income supported that character. The fact that the assessee was not ordinarily in the business of lending did not prevent the advance from being classified as a business loan. The separate issue of the year of allowance was treated as academic and not decided. Case-Laws Income Tax Tue, 09 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331178