COMMISSIONER OF INCOME-TAX, U.P. vs NAINITAL BANK LTD.

The Supreme Court held that the loss of cash and ornaments due to dacoity is incidental to the banking business and qualifies as a trading loss under Section 10(1) of the Indian Income-tax Act, 1922. The Court emphasized that while not every loss is deductible, losses incurred in the operation of the business that are incidental to it can be claimed. The Court affirmed the High Court's decision, stating that the risk of loss from dacoity is inherent in the banking operations, thus allowing the deduction.