https://www.taxtmi.com/caselaws?id=8838 A genuine purchase arrangement entered into with the dominant object of resale at a profit was treated as an adventure in the nature of trade. On that basis, the loss arising from the pipe transaction was deductible as a business loss even though delivery was never taken, because the liability arose from a trading arrangement. Interest on borrowings used to discharge that liability was also deductible, as the borrowing was integrally linked to the same business transaction. Travelling expenses and bank commission connected with the transaction were likewise allowable because they were incurred wholly and exclusively for the trading adventure. en-us Thu, 18 Jan 1973 00:00:00 +0530 Thu, 06 Oct 2016 14:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8838 A genuine purchase arrangement entered into with the dominant object of resale at a profit was treated as an adventure in the nature of trade. On that basis, the loss arising from the pipe transaction was deductible as a business loss even though delivery was never taken, because the liability arose from a trading arrangement. Interest on borrowings used to discharge that liability was also deductible, as the borrowing was integrally linked to the same business transaction. Travelling expenses and bank commission connected with the transaction were likewise allowable because they were incurred wholly and exclusively for the trading adventure. Case-Laws Income Tax Thu, 18 Jan 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8838