It also derives income from investment in Government securities.
Its appeal before the Income Tax Appellate Commissioner failed but the assessee succeeded in the further appeal taken to the Tribunal.
For the assessment year 1964 65 it returned a loss of Rs.
According to him it was number incidental to the business of the assessee.
The companyresponding accounting year ended on October 16, 1963.
Income tax was levied on such income also.
50,000/ for the purpose of purchasing Government securities was brought in cash to Rajahmundry by its employee.
The assessment year in question is 1964 65.
The said figure was arrived at after claiming a loss of Rs.
30,000/ lost by theft as a permissible deduction in companyputation of his net income on the ground that it was a trading loss.
5,008/ from the business.
The Income Tax Officer rejected the claim treating the loss as being either of idle money or a capital loss.
A large number of authorities were companysidered including the one in Badridas Dagas case.
The assessee had sold some Government securities and bonds in the years both preceding and succeeding the accounting year companycerned in the present appeal.
The money was handed over to its cashier.
A sum of Rs.
30,000/ on account of theft companymitted by some stranger during the companyresponding accounting period.
l00,000/ and odd was stolen in a dacoity companymitted at about 7.00 p.m Subba Rao J., as he then was, dismissing the departments appeal held the loss to be an admissible deduction chiefly on the ground that it formed part of the stock in trade of a banking companypany.
The assessee is a registered firm carrying on business in gold, silver and gunnies at Rajahmundry.
L. UntwaliA, J. This is an assessees appeal by special leave from the decision of the Andhra Pradesh High Court in a reference made by the Income Tax Appellate Tribunal, Hyderabad Bench under Section 256 1 of the Income Tax Act, 1961 hereinafter referred to as the 1961 Act.
