https://www.taxtmi.com/caselaws?id=6710 A business-related debt advanced to secure distribution rights, when it later became irrecoverable, was treated as a trading loss deductible in computing business profits because it arose out of and was incidental to the assessee's business. Litigation incurred in proceedings connected with the business transaction was also deductible as a proper business outlay. The court held that both the irrecoverable advance and the litigation expense were allowable deductions as trade losses under accepted commercial principles and the relevant deduction provision. en-us Fri, 03 Jun 1966 00:00:00 +0530 Sun, 01 Feb 2009 12:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6710 A business-related debt advanced to secure distribution rights, when it later became irrecoverable, was treated as a trading loss deductible in computing business profits because it arose out of and was incidental to the assessee's business. Litigation incurred in proceedings connected with the business transaction was also deductible as a proper business outlay. The court held that both the irrecoverable advance and the litigation expense were allowable deductions as trade losses under accepted commercial principles and the relevant deduction provision. Case-Laws Income Tax Fri, 03 Jun 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6710