https://www.taxtmi.com/caselaws?id=14553 The High Court of Madras held that an advance made by a film distributor to a producer was a trading loss, not a capital advance, under section 37 of the Income-tax Act. The court emphasized that temporary advances in business are common, even if not under the Money Lenders Act, and clarified that spending to salvage capital does not make it capital expenditure. The court ruled in favor of the assessee, allowing the deduction of the irrecoverable advance as a revenue loss incurred in the course of business. en-us Tue, 17 Nov 1998 00:00:00 +0530 Fri, 17 Jul 2009 11:32:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14553 The High Court of Madras held that an advance made by a film distributor to a producer was a trading loss, not a capital advance, under section 37 of the Income-tax Act. The court emphasized that temporary advances in business are common, even if not under the Money Lenders Act, and clarified that spending to salvage capital does not make it capital expenditure. The court ruled in favor of the assessee, allowing the deduction of the irrecoverable advance as a revenue loss incurred in the course of business. Case-Laws Income Tax Tue, 17 Nov 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14553