https://www.taxtmi.com/caselaws?id=36687 Deduction for loss on shares was denied because the assessee failed to show that the shares in Navanagar Industries Ltd. were held as trading stock rather than as capital investment. Deduction for the amount written off on advances was allowed as a trading debt because the debt was found to arise directly from the assessee's business activity and to be incidental to that business. The court distinguished a remote commercial connection from a direct business nexus, and treated the financing of a company in which the assessee was substantially interested as part of the business structure itself. The claim as a capital loss did not survive once the trading-debt character was accepted. en-us Wed, 09 Nov 1977 00:00:00 +0530 Tue, 23 Feb 2016 16:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36687 Deduction for loss on shares was denied because the assessee failed to show that the shares in Navanagar Industries Ltd. were held as trading stock rather than as capital investment. Deduction for the amount written off on advances was allowed as a trading debt because the debt was found to arise directly from the assessee's business activity and to be incidental to that business. The court distinguished a remote commercial connection from a direct business nexus, and treated the financing of a company in which the assessee was substantially interested as part of the business structure itself. The claim as a capital loss did not survive once the trading-debt character was accepted. Case-Laws Income Tax Wed, 09 Nov 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36687