https://www.taxtmi.com/caselaws?id=160208 Loss of stock-in-trade at overseas branches that has ceased to be part of the business and realises no value is deductible as a trading loss; conversely any sum realised in substitution is a trading receipt. Estimation of the loss from prior balance-sheets and profit-and-loss records is permissible where direct evidence is absent. Payments of salaries, dependants' allowances and rent made after branches ceased are deductible only if there was a continuing legal liability or necessity to earn taxed profits; absent proof of contractual or legal continuation, such post-cessation expenses are not allowable. en-us Mon, 10 Mar 1958 00:00:00 +0530 Sat, 19 Mar 2016 18:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=160208 Loss of stock-in-trade at overseas branches that has ceased to be part of the business and realises no value is deductible as a trading loss; conversely any sum realised in substitution is a trading receipt. Estimation of the loss from prior balance-sheets and profit-and-loss records is permissible where direct evidence is absent. Payments of salaries, dependants' allowances and rent made after branches ceased are deductible only if there was a continuing legal liability or necessity to earn taxed profits; absent proof of contractual or legal continuation, such post-cessation expenses are not allowable. Case-Laws Income Tax Mon, 10 Mar 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=160208