https://www.taxtmi.com/caselaws?id=56026 Irrecoverable advances made in the ordinary course of trading transactions against supply of goods can be deductible as a business loss when the non-recovery arises directly from the assessee's business operations. Even if the claim does not satisfy the statutory conditions for bad debt under section 36(1)(vii) read with section 36(2)(i), the loss remains allowable where it is commercially connected to the trading activity. The stated position is supported by Gujarat High Court authority and treats such unrecovered advances as a loss incidental to business under section 28(1) of the Income-tax Act, 1961. en-us Tue, 15 Jan 2002 00:00:00 +0530 Wed, 01 Dec 2010 11:53:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56026 Irrecoverable advances made in the ordinary course of trading transactions against supply of goods can be deductible as a business loss when the non-recovery arises directly from the assessee's business operations. Even if the claim does not satisfy the statutory conditions for bad debt under section 36(1)(vii) read with section 36(2)(i), the loss remains allowable where it is commercially connected to the trading activity. The stated position is supported by Gujarat High Court authority and treats such unrecovered advances as a loss incidental to business under section 28(1) of the Income-tax Act, 1961. Case-Laws Income Tax Tue, 15 Jan 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56026