https://www.taxtmi.com/caselaws?id=276712 Cash kept as circulating capital for banking operations and lost in a dacoity was treated as a business loss incidental to the carrying on of banking business, rather than a loss suffered merely in the capacity of owner of funds. The loss was held deductible in computing true business profits because a bank must maintain liquid funds for withdrawals and statutory reserve requirements, and the robbery of such operational cash was sufficiently connected with the business. The principle stated is that, unless expressly excluded by the Act, a loss of circulating capital used in the effective conduct of banking operations is allowable under section 10(1). en-us Mon, 19 Dec 1960 00:00:00 +0530 Fri, 16 Nov 2018 11:49:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276712 Cash kept as circulating capital for banking operations and lost in a dacoity was treated as a business loss incidental to the carrying on of banking business, rather than a loss suffered merely in the capacity of owner of funds. The loss was held deductible in computing true business profits because a bank must maintain liquid funds for withdrawals and statutory reserve requirements, and the robbery of such operational cash was sufficiently connected with the business. The principle stated is that, unless expressly excluded by the Act, a loss of circulating capital used in the effective conduct of banking operations is allowable under section 10(1). Case-Laws Income Tax Mon, 19 Dec 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276712