https://www.taxtmi.com/caselaws?id=275979 A loss from theft of cash carried by an assessee after encashing business receipts was held not to be a trade loss deductible in computing business profits. A deduction is available only where the loss springs directly from, and is inseparable from, the carrying on of the business; a merely remote connection is insufficient. On the facts, cashing the cheque and carrying the money on the person was not itself part of the business, so the theft did not arise out of business operations. Cases involving embezzlement or defalcation by agents or employees were distinguished because those losses arose from persons entrusted with business management. The loss was therefore not an allowable deduction. en-us Fri, 31 Mar 1961 00:00:00 +0530 Wed, 24 Oct 2018 17:01:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=275979 A loss from theft of cash carried by an assessee after encashing business receipts was held not to be a trade loss deductible in computing business profits. A deduction is available only where the loss springs directly from, and is inseparable from, the carrying on of the business; a merely remote connection is insufficient. On the facts, cashing the cheque and carrying the money on the person was not itself part of the business, so the theft did not arise out of business operations. Cases involving embezzlement or defalcation by agents or employees were distinguished because those losses arose from persons entrusted with business management. The loss was therefore not an allowable deduction. Case-Laws Income Tax Fri, 31 Mar 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=275979