https://www.taxtmi.com/caselaws?id=8201 A trading loss arising from breach of contract is deductible in the year it is actually suffered and quantified in the accounts, even if litigation for recovery remains pending. The pendency of a suit does not postpone or negate an already incurred loss; any later recovery is brought to tax in the year of receipt, and any shortfall can be adjusted in that later year. On that basis, the disallowance of the assessee's claim was not justified, and the loss was held allowable for the relevant assessment year. en-us Tue, 01 Dec 1970 00:00:00 +0530 Mon, 06 Apr 2009 08:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8201 A trading loss arising from breach of contract is deductible in the year it is actually suffered and quantified in the accounts, even if litigation for recovery remains pending. The pendency of a suit does not postpone or negate an already incurred loss; any later recovery is brought to tax in the year of receipt, and any shortfall can be adjusted in that later year. On that basis, the disallowance of the assessee's claim was not justified, and the loss was held allowable for the relevant assessment year. Case-Laws Income Tax Tue, 01 Dec 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8201