https://www.taxtmi.com/caselaws?id=49539 The Supreme Court ruled against the respondent firm, overturning the High Court's decision and disallowing the deduction claimed under the Income-tax Act. The Court emphasized that for a loss to be deductible, it must directly arise from and be incidental to the business itself, highlighting the commercial nature of losses. The Court held that the liability in question did not meet these criteria as it did not stem directly from the business but rather from dealings with another party. The appeal was allowed, with costs awarded to the appellant in both the Supreme Court and the High Court. en-us Tue, 06 Dec 1960 00:00:00 +0530 Sun, 31 Aug 2014 19:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49539 The Supreme Court ruled against the respondent firm, overturning the High Court's decision and disallowing the deduction claimed under the Income-tax Act. The Court emphasized that for a loss to be deductible, it must directly arise from and be incidental to the business itself, highlighting the commercial nature of losses. The Court held that the liability in question did not meet these criteria as it did not stem directly from the business but rather from dealings with another party. The appeal was allowed, with costs awarded to the appellant in both the Supreme Court and the High Court. Case-Laws Income Tax Tue, 06 Dec 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49539