https://www.taxtmi.com/caselaws?id=186220 Under the mercantile system, interest accrued and credited to a suspense account remained taxable income where the accounting treatment was not shown to be a regular practice and was adopted only because recovery was doubtful. Losses from a discontinued business arrangement were not allowable as a revenue deduction, because the business had ceased in the relevant year and the loss was treated as capital in nature. For bad debts, mere expiry of limitation did not prove irrecoverability in the accounting year; the question depended on evidence and was one of fact for the tax authorities. A debt could not be written off piecemeal while a reasonable prospect of recovery remained. en-us Fri, 26 Feb 1937 00:00:00 +0530 Sat, 10 Sep 2016 10:32:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186220 Under the mercantile system, interest accrued and credited to a suspense account remained taxable income where the accounting treatment was not shown to be a regular practice and was adopted only because recovery was doubtful. Losses from a discontinued business arrangement were not allowable as a revenue deduction, because the business had ceased in the relevant year and the loss was treated as capital in nature. For bad debts, mere expiry of limitation did not prove irrecoverability in the accounting year; the question depended on evidence and was one of fact for the tax authorities. A debt could not be written off piecemeal while a reasonable prospect of recovery remained. Case-Laws Income Tax Fri, 26 Feb 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186220