1998 (11) TMI 17

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....el for the Revenue contended that the advance which has been held to be a trading loss, though made in the course of business was not made in the course of money-lending business and, therefore, the money so advanced has only to be regarded as a further advance of capital and not an advance which can be regarded as a trading transaction. The assessee which carries on the business of distributio....

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....read any such requirement into section 37 of the Income-tax Act. In any business, credit is an indispensable part and advances of a temporary nature with or without interest is a common incidence of business. It is not necessary that every business should register itself under the Money Lenders Act and make any claim in relation to any advance made by it only in the capacity of a person carryin....

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....eted, the assessee had agreed to lend money and that lending was a separate transaction and was not part of the distribution arrangement. The money so lent having been found to have become irrecoverable by reason of the picture failing at the box office and the producer being unable to repay his debts, the money so lost to the assessee was rightly held by the Commissioner and the Tribunal to be a ....