https://www.taxtmi.com/caselaws?id=6992 Loss of stock-in-trade destroyed by enemy bombing was treated as an allowable deduction in computing business profits under the Indian Income-tax Act, 1922. The court applied the ordinary commercial method of profit computation, under which opening stock, purchases, receipts and closing stock are taken into account to determine true trading results. On that approach, destruction of stock-in-trade is reflected in the profit calculation and is not confined to the narrower test used for losses of money by theft, embezzlement or dacoity. The authorities supporting deduction of trading loss for destroyed stock were accepted as stating the correct principle, and the reference was answered in favour of the assessee. en-us Thu, 27 Apr 1967 00:00:00 +0530 Sat, 07 Feb 2009 18:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6992 Loss of stock-in-trade destroyed by enemy bombing was treated as an allowable deduction in computing business profits under the Indian Income-tax Act, 1922. The court applied the ordinary commercial method of profit computation, under which opening stock, purchases, receipts and closing stock are taken into account to determine true trading results. On that approach, destruction of stock-in-trade is reflected in the profit calculation and is not confined to the narrower test used for losses of money by theft, embezzlement or dacoity. The authorities supporting deduction of trading loss for destroyed stock were accepted as stating the correct principle, and the reference was answered in favour of the assessee. Case-Laws Income Tax Thu, 27 Apr 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6992