https://www.taxtmi.com/caselaws?id=6524 A loss of cash by theft was treated as a deductible trading loss where the money had been borrowed for business use and carried in cash to purchase Government securities. The Supreme Court applied the principle that a loss, even if not expressly covered by a deduction provision, is allowable when it arises directly from the carrying on of the business and is incidental to it. Because the theft occurred during that business operation and had a direct commercial nexus, the loss was not regarded as a capital or idle-money loss. The assessee's claim succeeded and the loss was held deductible in computing taxable profits. en-us Fri, 04 Nov 1977 00:00:00 +0530 Fri, 05 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6524 A loss of cash by theft was treated as a deductible trading loss where the money had been borrowed for business use and carried in cash to purchase Government securities. The Supreme Court applied the principle that a loss, even if not expressly covered by a deduction provision, is allowable when it arises directly from the carrying on of the business and is incidental to it. Because the theft occurred during that business operation and had a direct commercial nexus, the loss was not regarded as a capital or idle-money loss. The assessee's claim succeeded and the loss was held deductible in computing taxable profits. Case-Laws Income Tax Fri, 04 Nov 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6524