STAR COMPANY LIMITED vs COMMISSIONER OF INCOME TAX (CENTRAL) CALCUTTA

The Supreme Court held that losses incurred by the appellant in purchasing shares at a price above market value, later sold at market price, do not qualify as losses arising in the ordinary course of business under the Income Tax Act. The Court emphasized that the shares were not acquired as part of the appellant's trading activities but rather as part of a scheme to assist an associate in acquiring management of another company. Consequently, the appeal was dismissed, affirming the lower courts' decisions rejecting the claim for loss deduction.