SUTLEJ COTTON MILLS LTD. vs COMMR. OF INCOME TAX, WEST BENGAL, CALCUTTA

The Supreme Court ruled that losses incurred due to currency devaluation, specifically under the Income Tax Act, 1922, Sections 10(1) and 10(2), are not deductible as revenue expenditure. The Court held that the losses claimed by the assessee for the assessment years 1957-58 and 1959-60, resulting from the remittance of profits from Pakistan, were not business losses but rather losses caused by an act of State. Consequently, the High Court's decision favoring the Revenue was upheld, denying the assessee's claims for loss deductions.