https://www.taxtmi.com/caselaws?id=8173 A money-lender's conversion of a loan into shares was treated as a capital investment, not a trading asset, where the shares were acquired in new companies, were not taken as security for the advance, and were not purchased as part of any share-trading activity. The court noted that the transaction was intended to close the loan arrangement and replace it with corporate shareholding, and that no debt remained outstanding after the conversion. As a result, the claimed bad debt deduction failed because there was no subsisting debt to write off, and the assessee was denied relief. en-us Tue, 03 Mar 1970 00:00:00 +0530 Tue, 31 Mar 2009 17:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8173 A money-lender's conversion of a loan into shares was treated as a capital investment, not a trading asset, where the shares were acquired in new companies, were not taken as security for the advance, and were not purchased as part of any share-trading activity. The court noted that the transaction was intended to close the loan arrangement and replace it with corporate shareholding, and that no debt remained outstanding after the conversion. As a result, the claimed bad debt deduction failed because there was no subsisting debt to write off, and the assessee was denied relief. Case-Laws Income Tax Tue, 03 Mar 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8173