https://www.taxtmi.com/caselaws?id=272905 Whether a payment made on enforcement of a guarantee relates to the assessee's money lending business: court held the guarantee was collateral to a company in which the assessee had indirect interest, lacked direct creditor debtor nexus and was not integral to ordinary money lending practice, therefore not business connected. Whether the payment is a bad debt under the Income tax Act: because the enforced payment did not arise from a loan advanced in the ordinary course of business, it is not an admissible bad debt. Whether the payment is a business deduction: the loss is capital in nature and not deductible as a business loss or under general deduction principles. en-us Mon, 19 Jan 1959 00:00:00 +0530 Thu, 24 May 2018 12:26:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272905 Whether a payment made on enforcement of a guarantee relates to the assessee's money lending business: court held the guarantee was collateral to a company in which the assessee had indirect interest, lacked direct creditor debtor nexus and was not integral to ordinary money lending practice, therefore not business connected. Whether the payment is a bad debt under the Income tax Act: because the enforced payment did not arise from a loan advanced in the ordinary course of business, it is not an admissible bad debt. Whether the payment is a business deduction: the loss is capital in nature and not deductible as a business loss or under general deduction principles. Case-Laws Income Tax Mon, 19 Jan 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272905