https://www.taxtmi.com/caselaws?id=9219 Irrecoverable advances made to sub-contractors in the ordinary course of forest-leasing operations were treated as business expenditure, not confined to the bad debt provision. The Court reasoned that the advances were laid out wholly and exclusively for business purposes to engage labour and continue operations, and that a commercial loss arising from working the business is deductible if it is not capital in nature. It further held that the residuary deduction provision covers non-capital expenditure incurred for business purposes even where a bad debt provision may also exist. The deduction was allowed under section 37 of the Income-tax Act, 1961. en-us Fri, 08 Feb 1974 00:00:00 +0530 Sat, 20 Jun 2009 15:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9219 Irrecoverable advances made to sub-contractors in the ordinary course of forest-leasing operations were treated as business expenditure, not confined to the bad debt provision. The Court reasoned that the advances were laid out wholly and exclusively for business purposes to engage labour and continue operations, and that a commercial loss arising from working the business is deductible if it is not capital in nature. It further held that the residuary deduction provision covers non-capital expenditure incurred for business purposes even where a bad debt provision may also exist. The deduction was allowed under section 37 of the Income-tax Act, 1961. Case-Laws Income Tax Fri, 08 Feb 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9219