https://www.taxtmi.com/caselaws?id=7358 A guarantee undertaken by an assessee on grounds of commercial expediency, in connection with its business relationship, can give rise to an allowable deduction where the resulting payment or debt is shown to be irrecoverable and incidental to the business. The court accepted the Tribunal's factual finding that the assessee had in fact stood guarantee on the evidence, and held that the payment made under that guarantee was connected with the assessee's business rather than being outside the ordinary course of business. The claimed amount was therefore deductible in computing business profits. en-us Fri, 07 Jan 1966 00:00:00 +0530 Wed, 18 Feb 2009 11:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7358 A guarantee undertaken by an assessee on grounds of commercial expediency, in connection with its business relationship, can give rise to an allowable deduction where the resulting payment or debt is shown to be irrecoverable and incidental to the business. The court accepted the Tribunal's factual finding that the assessee had in fact stood guarantee on the evidence, and held that the payment made under that guarantee was connected with the assessee's business rather than being outside the ordinary course of business. The claimed amount was therefore deductible in computing business profits. Case-Laws Income Tax Fri, 07 Jan 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7358