https://www.taxtmi.com/caselaws?id=7134 Amounts arising from speculative business transactions prohibited by law were treated as trading debts entered on mercantile account, and their mere unenforceability in court did not by itself destroy their character as deductible bad debts. The governing test was whether the debts were in fact irrecoverable. On the facts, the write-off, the tax officer's enquiry to debtors, the debtors' non-response, and the surrounding circumstances supported the inference that the amounts had become unrealised and unrecoverable, so the deduction as bad debts was allowed under the relevant provisions of the Indian Income-tax Act, 1922. en-us Fri, 23 Jun 1967 00:00:00 +0530 Wed, 11 Feb 2009 16:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7134 Amounts arising from speculative business transactions prohibited by law were treated as trading debts entered on mercantile account, and their mere unenforceability in court did not by itself destroy their character as deductible bad debts. The governing test was whether the debts were in fact irrecoverable. On the facts, the write-off, the tax officer's enquiry to debtors, the debtors' non-response, and the surrounding circumstances supported the inference that the amounts had become unrealised and unrecoverable, so the deduction as bad debts was allowed under the relevant provisions of the Indian Income-tax Act, 1922. Case-Laws Income Tax Fri, 23 Jun 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7134