1946 (2) TMI 10 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the respondent, a Nattukottai Chetti money-lender, allowing a deduction of Rs. 19,670 as a business loss incurred in guaranteeing a loan. The Tribunal accepted the deduction under Section 10(2)(xii) for expenditure wholly and exclusively for the business purpose. The Court held that the deduction was justified as a business loss, even though it did not strictly fall under Section 10(2)(xii). The Commissioner of Income-tax was ordered to pay costs of Rs. 250.