https://www.taxtmi.com/caselaws?id=49358 A loss is deductible as a trading loss if, under accepted commercial practice and trading principles, it arises out of the carrying on of the business and is incidental to it. Here, the managing agents acted under the company's authority, and the relevant resolutions and memorandum permitted the use of funds and lending transactions, so the resulting obligations were incurred in the course of business. Their later failure to repay, including any impropriety or dishonest conduct, did not alter the business character of the loss. The irrecoverable debt was therefore a proper item in commercial accounts and deductible in computing profits. en-us Thu, 01 Oct 1964 00:00:00 +0530 Thu, 21 Aug 2014 21:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49358 A loss is deductible as a trading loss if, under accepted commercial practice and trading principles, it arises out of the carrying on of the business and is incidental to it. Here, the managing agents acted under the company's authority, and the relevant resolutions and memorandum permitted the use of funds and lending transactions, so the resulting obligations were incurred in the course of business. Their later failure to repay, including any impropriety or dishonest conduct, did not alter the business character of the loss. The irrecoverable debt was therefore a proper item in commercial accounts and deductible in computing profits. Case-Laws Income Tax Thu, 01 Oct 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49358