https://www.taxtmi.com/caselaws?id=5015 Whether advances and guarantee payments were deductible under Section 10(2)(xi) turns on whether the debts were incurred in the course of the managing-agency business. The Tribunal found the appellant operated as managing agent, advanced substantial sums on current account, provided guarantees, and had corporate power and contractual option to lend; material showed selection as managing agent was due to its ability to fund. The High Court substituted its view treating the advances as capital, but on the material the advances and guarantee payments were made in the ordinary course of the managing-agency business and therefore deductible as business losses. en-us Thu, 16 Mar 1967 00:00:00 +0530 Tue, 18 Nov 2008 16:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5015 Whether advances and guarantee payments were deductible under Section 10(2)(xi) turns on whether the debts were incurred in the course of the managing-agency business. The Tribunal found the appellant operated as managing agent, advanced substantial sums on current account, provided guarantees, and had corporate power and contractual option to lend; material showed selection as managing agent was due to its ability to fund. The High Court substituted its view treating the advances as capital, but on the material the advances and guarantee payments were made in the ordinary course of the managing-agency business and therefore deductible as business losses. Case-Laws Income Tax Thu, 16 Mar 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5015