Commissioner Of Income Tax vs Abdullabhai Abdulkadar

Whether a loss incurred by a resident agent, due to a statutory liability to pay tax on behalf of a non-resident principal under Section 42 of the Income Tax Act, is an allowable deduction as a business loss or bad debt under Section 10(1) or 10(2)(xi) of the Act? --- Held: No. The loss is not incidental to the agent's own business but arises from the statutory deeming provision for another's liability, and thus is not deductible.