https://www.taxtmi.com/caselaws?id=49668 Loss from standing surety for another person's borrowing was not deductible as a bad debt or trading loss where the borrowing did not finance the assessee's own timber business. The Court held that the claimed Bombay custom was not proved as a reciprocal and essential incident of carrying on that business, and distinguished the money-lending precedent involving mutuality among Nattukottai Chettiars. Because the debt was not a trading debt of the timber business, the write-off was treated as a capital loss and the claim failed. en-us Tue, 08 May 1956 00:00:00 +0530 Mon, 08 Sep 2014 10:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49668 Loss from standing surety for another person's borrowing was not deductible as a bad debt or trading loss where the borrowing did not finance the assessee's own timber business. The Court held that the claimed Bombay custom was not proved as a reciprocal and essential incident of carrying on that business, and distinguished the money-lending precedent involving mutuality among Nattukottai Chettiars. Because the debt was not a trading debt of the timber business, the write-off was treated as a capital loss and the claim failed. Case-Laws Income Tax Tue, 08 May 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49668