JUDGMENT OF THE COURT
1. The appeal herein revolves around the application of Sections 15(1), (2)(a) and 16(1)(a) of the Income Tax Act in determining the taxable income of a person. The relevant portions of Section 15 read in part as follows:
“15. (1) For the purpose of ascertaining the total income of any person for a year of income there shall, subject to section 16 of this Act, be deducted all expenditure incurred in such year of income which is expenditure wholly and exclusively incurred by him in the production of that income,...
(2) Without prejudice to sub-section (1) of this section, in computing for a year of income the gains or profits chargeable to tax under section 3(2)(a) of this Act, the following amounts shall be deducted:
(a) bad debts incurred in the production of such gains or profits which the Commissioner considers to have become bad, and doubtful debts so incurred to the extent that they are estimated to the satisfaction of the Commissioner to have become bad, during…