CIT v. Nainital Bank Ltd.

55 ITR 707Supreme Court of India1965#1523 most cited
75

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2007 to 2026.

Also referred to as

CIT v. Nainital Bank Ltd. · 55 ITR 707 SC · Section 37 Income-tax Act · Section 10(2)(xv) 1922 Act · business expenditure deductibility · proximate nexus business · business expediency test · legal expenses · expenditure prohibited by law · Section 132 search and seizure · Section 153A proceedings

Sections most often in play

Section 37Section 143(3)Section 250Section 132Section 144Section 143(2)Section 144BSection 147

Issues it is cited on

section 153cofproximate nexussection 10(2)(xv)section 153a proceedingssection 10(2)section 36(2)explanation to section 37business expediencylegal expensesprohibited by lawsection 158bdsection 269s

Judgments citing CIT v. Nainital Bank Ltd.

DCIT, CIR-5(1), , KOLKATA vs. M/S COAL INDIA LTD., KOLKATA

ITA 1697/KOL/2019[2014-15]Status: DisposedITAT Kolkata20 Jan 2026AY 2014-15

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

…ision being contingent in nature and the liability raised also included fine or penalty imposed by the forest department, therefore, relying upon the decision of the Hon'ble Supreme Court in the case of Commissioner of Income-tax vs. Nainital Bank Ltd. [1966] 62 ITR 638 (SC)[15-09- 1966] he disallowed a sum of ₹1,90,46,000/- claimed as a deduction u/s 37(1) of the Act and also added the amount to the book profit for the purpose of computation of MAT u/s 115JB of the Act. 8.1 Before the Ld. CIT(A), the assessee submitted that the Government of India-Ministry of Coal had issued guidelines (attached as Annexure 4) v…

M/S COAL INDIA LTD.,KOLKATA vs. DCIT, CIR-5(1), , KOLKATA

ITA 1407/KOL/2019[2014-15]Status: DisposedITAT Kolkata20 Jan 2026AY 2014-15

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 1Section 115JSection 250

…ision being contingent in nature and the liability raised also included fine or penalty imposed by the forest department, therefore, relying upon the decision of the Hon'ble Supreme Court in the case of Commissioner of Income-tax vs. Nainital Bank Ltd. [1966] 62 ITR 638 (SC)[15-09- 1966] he disallowed a sum of ₹1,90,46,000/- claimed as a deduction u/s 37(1) of the Act and also added the amount to the book profit for the purpose of computation of MAT u/s 115JB of the Act. 8.1 Before the Ld. CIT(A), the assessee submitted that the Government of India-Ministry of Coal had issued guidelines (attached as Annexure 4) v…

DCIT, CIRCLE - 5(1), KOLKATA, KOLKATA vs. M/S. COAL INDIA LIMITED , KOLKATA

ITA 622/KOL/2018[2011-12]Status: DisposedITAT Kolkata20 Jan 2026AY 2011-12

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

…ision being contingent in nature and the liability raised also included fine or penalty imposed by the forest department, therefore, relying upon the decision of the Hon'ble Supreme Court in the case of Commissioner of Income-tax vs. Nainital Bank Ltd. [1966] 62 ITR 638 (SC)[15-09- 1966] he disallowed a sum of ₹1,90,46,000/- claimed as a deduction u/s 37(1) of the Act and also added the amount to the book profit for the purpose of computation of MAT u/s 115JB of the Act. 8.1 Before the Ld. CIT(A), the assessee submitted that the Government of India-Ministry of Coal had issued guidelines (attached as Annexure 4) v…

JCIT(OSD) CENTRAL CIRCLE 1, JHANDEWALAN vs. SAHARA INDIA REAL ESTATE CORPORATION LTD., LUCKNOW

ITA 1085/DEL/2024[2017-18]Status: DisposedITAT Delhi07 Oct 2025AY 2017-18

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman

For Appellant: Sh. Ajay Vohra, Sr. Adv. &For Respondent: Sh. Mahesh Kumar, CIT-DR
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. S. Rifaur Rahman, Accountant Member ITA No. 1085 & CO No. 36/Del/2024 : Asstt. Year: 2017-18 JCIT(OSD), Vs Sahara India Real Estate Central Circle-1, Corporation Ltd., 1, Sahara India New Delhi-110055 Bhawan, Kapoorthala, Complex Aliganj, Lucknow-226024 (APPELLANT) (RESPONDENT) PAN No. AAJCS7265F Assessee by : Sh. Ajay Vohra, Sr. Adv. & Sh. Aditya Vohra, Adv. Revenue by : Sh. Mahesh Kumar, CIT-DR Date of Hearing: 10.07.2025 Date of Pronouncement: 07.10.2025 ORDER Per Satbeer Singh Godara, Judici…

RAMAMURTHY PRAVEEN CHANDRA,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, we have allowed grounds raised by the assessee as per above terms for all the years

ITA 622/BANG/2025[2016-17]Status: DisposedITAT Bangalore29 Sept 2025AY 2016-17

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Sankar Ganesh D, Add. CIT(DR)(ITAT), Bangalore
Section 132Section 143Section 153Section 153ASection 153CSection 250

…bay Steam Navigation Company, reported in 56 ITR 52  CIT Vs. Abhoyjan Tea Estate [P] Ltd. 110 ITR 251  Eastern Investments Ltd Vs. CIT [1951] 20 ITR 1 [SC];  CIT Vs. Chaandulal Keshavlal & Co., [1960] 38 ITR 601 [SC];  CIT Vs. Nainital Bank limited [1966] 62 ITR 638 [SC];  Sri Venkata Sathyanarayana Rice Mill Contractors Co. Vs. CIT [1997] 223 ITR 101 [SC]; 12. On the other hand, learned DR relied on the Orders of the lower authorities and submitted that the documents were found during the search of M/s. Assetz Infrastructure Pvt. Ltd., and pertains and relates to assessee. AO has recorded satisfaction and h…

RAMAMURTHY PRAVEEN CHANDRA,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, we have allowed grounds raised by the assessee as per above terms for all the years

ITA 621/BANG/2025[2015-16]Status: DisposedITAT Bangalore29 Sept 2025AY 2015-16

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Sankar Ganesh D, Add. CIT(DR)(ITAT), Bangalore
Section 132Section 143Section 153Section 153ASection 153CSection 250

…bay Steam Navigation Company, reported in 56 ITR 52  CIT Vs. Abhoyjan Tea Estate [P] Ltd. 110 ITR 251  Eastern Investments Ltd Vs. CIT [1951] 20 ITR 1 [SC];  CIT Vs. Chaandulal Keshavlal & Co., [1960] 38 ITR 601 [SC];  CIT Vs. Nainital Bank limited [1966] 62 ITR 638 [SC];  Sri Venkata Sathyanarayana Rice Mill Contractors Co. Vs. CIT [1997] 223 ITR 101 [SC]; 12. On the other hand, learned DR relied on the Orders of the lower authorities and submitted that the documents were found during the search of M/s. Assetz Infrastructure Pvt. Ltd., and pertains and relates to assessee. AO has recorded satisfaction and h…

RAMAMURTHY PRAVEEN CHANDRA,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, we have allowed grounds raised by the assessee as per above terms for all the years

ITA 620/BANG/2025[2014-15]Status: DisposedITAT Bangalore29 Sept 2025AY 2014-15

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Sankar Ganesh D, Add. CIT(DR)(ITAT), Bangalore
Section 132Section 143Section 153Section 153ASection 153CSection 250

…bay Steam Navigation Company, reported in 56 ITR 52  CIT Vs. Abhoyjan Tea Estate [P] Ltd. 110 ITR 251  Eastern Investments Ltd Vs. CIT [1951] 20 ITR 1 [SC];  CIT Vs. Chaandulal Keshavlal & Co., [1960] 38 ITR 601 [SC];  CIT Vs. Nainital Bank limited [1966] 62 ITR 638 [SC];  Sri Venkata Sathyanarayana Rice Mill Contractors Co. Vs. CIT [1997] 223 ITR 101 [SC]; 12. On the other hand, learned DR relied on the Orders of the lower authorities and submitted that the documents were found during the search of M/s. Assetz Infrastructure Pvt. Ltd., and pertains and relates to assessee. AO has recorded satisfaction and h…

RAMAMURTHY PRAVEEN CHANDRA,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, we have allowed grounds raised by the assessee as per above terms for all the years

ITA 619/BANG/2025[2013-14]Status: DisposedITAT Bangalore29 Sept 2025AY 2013-14

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan K

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Sankar Ganesh D, Add. CIT(DR)(ITAT), Bangalore
Section 132Section 143Section 153Section 153ASection 153CSection 250

…bay Steam Navigation Company, reported in 56 ITR 52  CIT Vs. Abhoyjan Tea Estate [P] Ltd. 110 ITR 251  Eastern Investments Ltd Vs. CIT [1951] 20 ITR 1 [SC];  CIT Vs. Chaandulal Keshavlal & Co., [1960] 38 ITR 601 [SC];  CIT Vs. Nainital Bank limited [1966] 62 ITR 638 [SC];  Sri Venkata Sathyanarayana Rice Mill Contractors Co. Vs. CIT [1997] 223 ITR 101 [SC]; 12. On the other hand, learned DR relied on the Orders of the lower authorities and submitted that the documents were found during the search of M/s. Assetz Infrastructure Pvt. Ltd., and pertains and relates to assessee. AO has recorded satisfaction and h…

RADHAKISHAN BENIWAL,JAIPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1, JAIPUR, JAIPUR

In the result, the appeal filed by the assessee in ITA no

ITA 695/JPR/2025[2016-17]Status: DisposedITAT Jaipur10 Sept 2025AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri P. C. Parwal, CA &For Respondent: Shri Gorav Avasthi, JCIT
Section 139Section 144Section 147rSection 148Section 148ASection 194CSection 251Section 68

…purpose of the expenditure and the effect should be considered from a common sense angle having due regard to the business realities. A similar view was taken by the Hon’ble Supreme Court in several other cases, inter alia: • CIT vs Nainital Bank Ltd [1966] 62 ITR 638 (SC) • India Cements Ltd vs CIT [1966] 60 ITR 52 (SC) Reliance can also be placed on the decision of the Hon’ble Supreme Court in the case of Bombay Steam Navigation Co. Private Ltd. vs CIT [1965] 56 ITR 52 (SC), wherein it was held that: ‘…If the outgoing or expenditure is so related to the carrying on or conduct of the business, that it may be r…

RADHAKISHNA BENIWAL,JAIPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1, JAIPUR, JAIPUR

In the result, the appeal filed by the assessee in ITA no

ITA 694/JPR/2025[2015-16]Status: DisposedITAT Jaipur10 Sept 2025AY 2015-16

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri P. C. Parwal, CA &For Respondent: Shri Gorav Avasthi, JCIT
Section 139Section 144Section 147rSection 148Section 148ASection 194CSection 251Section 68

…purpose of the expenditure and the effect should be considered from a common sense angle having due regard to the business realities. A similar view was taken by the Hon’ble Supreme Court in several other cases, inter alia: • CIT vs Nainital Bank Ltd [1966] 62 ITR 638 (SC) • India Cements Ltd vs CIT [1966] 60 ITR 52 (SC) Reliance can also be placed on the decision of the Hon’ble Supreme Court in the case of Bombay Steam Navigation Co. Private Ltd. vs CIT [1965] 56 ITR 52 (SC), wherein it was held that: ‘…If the outgoing or expenditure is so related to the carrying on or conduct of the business, that it may be r…

THE COMMISSIONER OF INCOME TAX III, vs. M/S. SAVIJANA SEA FOODS PVT. LTD.,

Appeals of the Revenue are dismissed

ITTA/55/2010HC Telangana20 Dec 2024

Bench: J SREENIVAS RAO,ALOK ARADHE

Section 260

…$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA55/2010 COMMISSIONER OF INCOME TAX ..... Appellant Through: Ms. Vibhooti Malhotra, Jr. Standing Counsel for the Revenue versus GOPAL DAS ESTATES & HOUSING PVT.LTD ..... Respondent Through: Mr. M.S. Syali, Senior Advocate with Mr. Arta Trana Panda and Ms.Gargi Sethee, Advocates. CORAM: JUSTICE S. MURALIDHAR JUSTICE SANJEEV NARULA ORDER 20.03.2019 1. This appeal by the Revenue under Section 260-A of the Income Tax Act, 1961 (‘Act’) is directed against the judgment dated 27thFebruary 2009 of…

SAKETKUMAR RUGNATH TANNA,AHMEDABAD vs. THE DCIT, CENTRAL CIRCLE-2(2), AHMEDABAD

In the result the assessee appeal in ITA

ITA 978/AHD/2019[2014-15]Status: DisposedITAT Ahmedabad28 Aug 2024AY 2014-15

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 132Section 133ASection 139(1)Section 153A

…s incidental to trade itself (CIT vs. J.K. cotton Spinning & Weaving Mills Co. (1980) 123 ITR 911 (All.) b] The degree of the risk or its frequency is not of much relevance but its nexus to the nature of business is material (CIT vs. Nainital Bank Ltd. (1965) 55 ITR 707 (SC)] c) The loss for which a deduction is claimed must be one that springs directly from the carrying on of the business and is incidental to it, and any loss sustained by the assessee even if it has some connection with his business (Badridas Daga vs. CIT 34 ITR 10 (SC)] d] If there is a direct and proximate nexus between the business operation…

SAKETKUMAR RUGNATH TANNA,AHMEDABAD vs. THE DCIT, CENTRAL CIRCLE-2(2), AHMEDABAD

In the result the assessee appeal in ITA

ITA 977/AHD/2019[2007-08]Status: DisposedITAT Ahmedabad28 Aug 2024AY 2007-08

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 132Section 133ASection 139(1)Section 153A

…s incidental to trade itself (CIT vs. J.K. cotton Spinning & Weaving Mills Co. (1980) 123 ITR 911 (All.) b] The degree of the risk or its frequency is not of much relevance but its nexus to the nature of business is material (CIT vs. Nainital Bank Ltd. (1965) 55 ITR 707 (SC)] c) The loss for which a deduction is claimed must be one that springs directly from the carrying on of the business and is incidental to it, and any loss sustained by the assessee even if it has some connection with his business (Badridas Daga vs. CIT 34 ITR 10 (SC)] d] If there is a direct and proximate nexus between the business operation…

SAKETKUMAR RUGNATH TANNA LEGAL HEIR OF LATE SMT. INDUMATIBEN RUGNATH TANNA,AHMEDABAD vs. THE DCIT, CENTRAL CIRCLE-2(2), AHMEDABAD

In the result the assessee appeal in ITA

ITA 976/AHD/2019[2014-15]Status: DisposedITAT Ahmedabad28 Aug 2024AY 2014-15

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 132Section 133ASection 139(1)Section 153A

…s incidental to trade itself (CIT vs. J.K. cotton Spinning & Weaving Mills Co. (1980) 123 ITR 911 (All.) b] The degree of the risk or its frequency is not of much relevance but its nexus to the nature of business is material (CIT vs. Nainital Bank Ltd. (1965) 55 ITR 707 (SC)] c) The loss for which a deduction is claimed must be one that springs directly from the carrying on of the business and is incidental to it, and any loss sustained by the assessee even if it has some connection with his business (Badridas Daga vs. CIT 34 ITR 10 (SC)] d] If there is a direct and proximate nexus between the business operation…

SMT. RITABEN SAKETKUMAR TANNA,AHMEDABAD vs. THE DCIT, CENTRAL CIRCLE-2(2), AHMEDABAD

In the result the assessee appeal in ITA

ITA 975/AHD/2019[2014-15]Status: DisposedITAT Ahmedabad28 Aug 2024AY 2014-15

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 132Section 133ASection 139(1)Section 153A

…s incidental to trade itself (CIT vs. J.K. cotton Spinning & Weaving Mills Co. (1980) 123 ITR 911 (All.) b] The degree of the risk or its frequency is not of much relevance but its nexus to the nature of business is material (CIT vs. Nainital Bank Ltd. (1965) 55 ITR 707 (SC)] c) The loss for which a deduction is claimed must be one that springs directly from the carrying on of the business and is incidental to it, and any loss sustained by the assessee even if it has some connection with his business (Badridas Daga vs. CIT 34 ITR 10 (SC)] d] If there is a direct and proximate nexus between the business operation…

THE ITO WARD-5(3)(1) (PREVIOUSLY THE ACIT, CENTRAL CIRCLE-2(2)), AHMEDABAD vs. SHRI SAKETKUMAR RUGNATH TANNA LEGAL HEIR OF LATE SMT. INDUMATIBEN RUGNATH TANNA, AHMEDABAD

In the result the assessee appeal in ITA

ITA 921/AHD/2019[2007-08]Status: DisposedITAT Ahmedabad28 Aug 2024AY 2007-08

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 132Section 133ASection 139(1)Section 153A

…s incidental to trade itself (CIT vs. J.K. cotton Spinning & Weaving Mills Co. (1980) 123 ITR 911 (All.) b] The degree of the risk or its frequency is not of much relevance but its nexus to the nature of business is material (CIT vs. Nainital Bank Ltd. (1965) 55 ITR 707 (SC)] c) The loss for which a deduction is claimed must be one that springs directly from the carrying on of the business and is incidental to it, and any loss sustained by the assessee even if it has some connection with his business (Badridas Daga vs. CIT 34 ITR 10 (SC)] d] If there is a direct and proximate nexus between the business operation…

THE ACIT, CENTRAL CIRCLE-2(2), AHMEDABAD vs. SMT. RITABEN SAKETKUMAR TANNA, AHMEDABAD

In the result the assessee appeal in ITA

ITA 920/AHD/2019[2007-08]Status: DisposedITAT Ahmedabad28 Aug 2024AY 2007-08

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 132Section 133ASection 139(1)Section 153A

…s incidental to trade itself (CIT vs. J.K. cotton Spinning & Weaving Mills Co. (1980) 123 ITR 911 (All.) b] The degree of the risk or its frequency is not of much relevance but its nexus to the nature of business is material (CIT vs. Nainital Bank Ltd. (1965) 55 ITR 707 (SC)] c) The loss for which a deduction is claimed must be one that springs directly from the carrying on of the business and is incidental to it, and any loss sustained by the assessee even if it has some connection with his business (Badridas Daga vs. CIT 34 ITR 10 (SC)] d] If there is a direct and proximate nexus between the business operation…

DCIT, CIRCLE, PATIALA vs. M/S PUNJAB STATE POWER CORPORATION LTD., PATIALA

In the result, ground no. 1 & 3 of the Revenue’s appeal is allowed and ground no

ITA 737/CHANDI/2022[2017-18]Status: DisposedITAT Chandigarh27 Aug 2024AY 2017-18

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Rajiv Saldi, CAFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 143(2)

…आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE "ी िव"म िसंह यादव, लेखा सद" एवं "ी परेश म. जोशी, "ाियक सद" BEFORE: SHRI. VIKRAM SINGH YADAV, AM & SHRI. PARESH M. JOSHI, JM आयकर अपील सं./ ITA NO. 737/Chd/2022 िनधा"रण वष" / Assessment Year : 2017-18 The Dy. CIT बनाम M/s Punjab State Power Corporation Circle, Patiala Ltd. The Mall Road, Patiala "ायी लेखा सं./PAN NO: AAFCP5120Q अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Shri Rajiv Saldi, CA राज" की ओर से/ Revenue by : Smt. Kusum Bansal, CIT, DR सु…

METAL CLOSURES PVT LTD,BANGALORE vs. ACIT, CIRCLE 4(1)(2), BANGALORE, BANGALORE

In the result, the appeal of the Revenue is treated as allowed for statistical purpose

ITA 941/BANG/2024[2014-15]Status: DisposedITAT Bangalore29 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadavassessment Year: 2014-15

For Appellant: Sri R.E. Balasubramanyam, A.RFor Respondent: Sri Subramanian S., D.R
Section 148Section 28Section 36(2)(i)

…port of the same, he relied upon the following decisions: Metal Closures Pvt. Ltd., Bangalore Page 4 of 16 a) Hon'ble Supreme Court in the case of Badridas Daga v CIT [1958] 34 ITR 10 (SC) b) Hon'ble Supreme Court in the case of CIT v Nainital Bank Ltd [1965] 55 ITR 707 (SC) c) Hon'ble High Court of Bombay in the case of Sassoon J David & Co (P) Ltd v CIT [1 975] 98 ITR 50 (80M.) 3.5 For the above reasons, he submitted that the impugned additions made by the Ld. AO are liable to be deleted and do not stand the test of law. 4. The ld. D.R. submitted that assessee has raised ground before ld. CIT(A) that it should…

METAL BOX INDIA LTD. ,KOLKATA vs. DCIT,CIR-11(1),KOL, KOLKATA

The appeal of the assessee is allowed for statistical purposes

ITA 453/KOL/2023[2013-14]Status: DisposedITAT Kolkata10 May 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2013-14

For Appellant: Shri Manish Tiwari, ARFor Respondent: Shri P. P. Barman, Addl. CIT, Sr. DR
Section 14ASection 250

…t be held in course of carrying out its business and thereby incidental to business. 8. Loss of stock in trading is deductible in computing business profit within the meaning of section 28(1). Reliance is placed to the decision in CIT –vs.- Nainital Bank Ltd. 55 ITR 707 (SC). 9. It is true that loss allowable u/s 28(1) must be in respect of a trading asset. Whether the loss suffered by the assessee was trading loss or not could depend on the answer to the question whether the loss was in respect of trading asset or a capital asset in the former case. It would be a trading loss but not so in the later. (Sutlez Cot…

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CIT v. Nainital Bank Ltd. (55 ITR 707) — Cited in 75 Judgments | BharatTax