https://www.taxtmi.com/caselaws?id=22040 A payment made under a commercial arrangement linked to the assessee's brokerage business was treated as a revenue loss because the liability arose when the introduced suppliers defaulted, not when decrees were obtained against them. The reduction of exposure to 50% was regarded as a business expediency, and the deductible loss was allowable in the year the liability crystallised. Any later recoveries from the defaulting parties were to be taxed in the year of receipt and did not affect deductibility in the relevant assessment year. en-us Wed, 01 Feb 1989 00:00:00 +0530 Sat, 05 Dec 2009 16:23:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22040 A payment made under a commercial arrangement linked to the assessee's brokerage business was treated as a revenue loss because the liability arose when the introduced suppliers defaulted, not when decrees were obtained against them. The reduction of exposure to 50% was regarded as a business expediency, and the deductible loss was allowable in the year the liability crystallised. Any later recoveries from the defaulting parties were to be taxed in the year of receipt and did not affect deductibility in the relevant assessment year. Case-Laws Income Tax Wed, 01 Feb 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22040