https://www.taxtmi.com/caselaws?id=7952 Interest written off as irrecoverable from a partner's capital account was not allowable as a deduction either as a bad debt or as a trading loss. The amount, though credited and taxed in earlier years, arose from a debit balance in the partner's capital account and not from an ordinary trading transaction of the firm. Because the successor firm had taken over the business with its assets and liabilities, the sum formed part of the capital structure inherited on succession, so it lacked the character of a trading debt or revenue loss deductible in computing business profits. en-us Thu, 23 Jul 1970 00:00:00 +0530 Thu, 26 Mar 2009 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7952 Interest written off as irrecoverable from a partner's capital account was not allowable as a deduction either as a bad debt or as a trading loss. The amount, though credited and taxed in earlier years, arose from a debit balance in the partner's capital account and not from an ordinary trading transaction of the firm. Because the successor firm had taken over the business with its assets and liabilities, the sum formed part of the capital structure inherited on succession, so it lacked the character of a trading debt or revenue loss deductible in computing business profits. Case-Laws Income Tax Thu, 23 Jul 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7952