https://www.taxtmi.com/caselaws?id=186326 A loan advanced in the course of a money-lending business may qualify for bad-debt deduction, but the decisive question is when the debt actually became irrecoverable. The Bombay HC noted that the assessee was carrying on money-lending activity and the advance was treated as a business loan, not an isolated arrangement. It also stated that deduction cannot rest on the mere write-off; the debt must in fact have become irrecoverable in the relevant year of account. The timing of irrecoverability is a question of fact for the tribunal, and a finding that the debt was only practically irrecoverable in an earlier year is not enough without a clear factual conclusion. en-us Fri, 28 Mar 1952 00:00:00 +0530 Wed, 14 Sep 2016 16:20:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186326 A loan advanced in the course of a money-lending business may qualify for bad-debt deduction, but the decisive question is when the debt actually became irrecoverable. The Bombay HC noted that the assessee was carrying on money-lending activity and the advance was treated as a business loan, not an isolated arrangement. It also stated that deduction cannot rest on the mere write-off; the debt must in fact have become irrecoverable in the relevant year of account. The timing of irrecoverability is a question of fact for the tribunal, and a finding that the debt was only practically irrecoverable in an earlier year is not enough without a clear factual conclusion. Case-Laws Income Tax Fri, 28 Mar 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186326