https://www.taxtmi.com/caselaws?id=7948 A refundable security deposit furnished under a business arrangement for carrying on an agency, and not for acquiring the agency or any capital asset, was incidental to the assessee's trade. Because the deposit was part of the commercial terms for earning profits and was not an irretrievable outlay, its loss when it became unrecoverable had to be treated on commercial principles as a business loss. The amount was therefore not a capital loss but an allowable trading loss. en-us Wed, 15 Jul 1970 00:00:00 +0530 Thu, 26 Mar 2009 10:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7948 A refundable security deposit furnished under a business arrangement for carrying on an agency, and not for acquiring the agency or any capital asset, was incidental to the assessee's trade. Because the deposit was part of the commercial terms for earning profits and was not an irretrievable outlay, its loss when it became unrecoverable had to be treated on commercial principles as a business loss. The amount was therefore not a capital loss but an allowable trading loss. Case-Laws Income Tax Wed, 15 Jul 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7948