https://www.taxtmi.com/caselaws?id=289690 The Madras HC held that loss arising from enforced sale of cloth was deductible only to the extent it represented a real commercial loss connected with business. The portion attributable to confiscated goods and related sale expenses was not allowable, because that part did not constitute a deductible trading loss. However, the balance loss on goods not ordered to be confiscated remained business-connected and was admissible in computing income. The ruling also distinguished authority on penalties for breach of law, because the amount in dispute was not the penalty itself but the loss caused by the manner of confiscation. Deduction was allowed only to the extent of Rs. 8,844. en-us Wed, 27 Apr 1955 00:00:00 +0530 Mon, 19 Jul 2021 14:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289690 The Madras HC held that loss arising from enforced sale of cloth was deductible only to the extent it represented a real commercial loss connected with business. The portion attributable to confiscated goods and related sale expenses was not allowable, because that part did not constitute a deductible trading loss. However, the balance loss on goods not ordered to be confiscated remained business-connected and was admissible in computing income. The ruling also distinguished authority on penalties for breach of law, because the amount in dispute was not the penalty itself but the loss caused by the manner of confiscation. Deduction was allowed only to the extent of Rs. 8,844. Case-Laws Income Tax Wed, 27 Apr 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289690