https://www.taxtmi.com/caselaws?id=49740 A debt allotted to a taxpayer on division of partnership outstandings can qualify as a bad debt if it is thereafter adopted in the books as part of the taxpayer's continuing money-lending business. The decisive factor is the substance of the account treatment: opening a separate debtor's account, carrying the amount as a loan, and crediting later recoveries indicate that the debt has been treated as a business advance rather than a capital asset from the old partnership. On that footing, an irrecoverable write-off falls within section 10(2)(xi) of the Indian Income-tax Act, 1922, and the deduction is admissible. en-us Mon, 01 Oct 1951 00:00:00 +0530 Fri, 12 Sep 2014 08:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49740 A debt allotted to a taxpayer on division of partnership outstandings can qualify as a bad debt if it is thereafter adopted in the books as part of the taxpayer's continuing money-lending business. The decisive factor is the substance of the account treatment: opening a separate debtor's account, carrying the amount as a loan, and crediting later recoveries indicate that the debt has been treated as a business advance rather than a capital asset from the old partnership. On that footing, an irrecoverable write-off falls within section 10(2)(xi) of the Indian Income-tax Act, 1922, and the deduction is admissible. Case-Laws Income Tax Mon, 01 Oct 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49740