https://www.taxtmi.com/caselaws?id=191360 Payments made pursuant to guarantees and undertakings to secure advances for ship purchase and fitting out were not regarded as transactions incidental to the assessee's ordinary freight-brokerage business and therefore were not allowable as deductions under section 10(2)(xi) of the Income-tax Act. The analysis emphasises that deductibility requires a loss to arise out of the taxpayer's trading operations and be really incidental to the trade; transactions primarily financing another's business or not shown to be a normal incident of the trade are capital in character. The assessee's receipt of a share of owners' profits reinforced non-incidental character and non-deductibility. en-us Mon, 31 Jul 1961 00:00:00 +0530 Fri, 31 Mar 2017 15:04:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191360 Payments made pursuant to guarantees and undertakings to secure advances for ship purchase and fitting out were not regarded as transactions incidental to the assessee's ordinary freight-brokerage business and therefore were not allowable as deductions under section 10(2)(xi) of the Income-tax Act. The analysis emphasises that deductibility requires a loss to arise out of the taxpayer's trading operations and be really incidental to the trade; transactions primarily financing another's business or not shown to be a normal incident of the trade are capital in character. The assessee's receipt of a share of owners' profits reinforced non-incidental character and non-deductibility. Case-Laws Income Tax Mon, 31 Jul 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191360