Loss of stock-in-trade as a result of enemy action, or arising under similar circ*mstances.
Loss of stock-in-trade due to destruction by an act of God.
Loss arising on account of failure on the part of the assessee to accept delivery of goods.
Depreciation in funds kept in foreign country for purchase of stock-in-trade.
Loss due to exchange rate fluctuations of foreign currency held on revenue account.
Loss arising from sale of securities held in the regular course of business.
Loss of cash and securities in a banking company on account of dacoity (maybe after banking hours.) 8. Loss incurred on realisation of amount advanced in connection with business.
Loss of security deposited for the purposes of acquisition of stock-in-trade.
Loss due to forfeiture of a deposit made by the assessee for properly carrying out of contract for supply of commodities.
Loss on account of embezzlement by an employee.
Loss incurred due to theft or burglary in factory premises during or after working hours.
Loss of precious stones or watches of a dealer while bringing them from business premises to his house.
Loss arising from negligence or dishonesty of employees.
Loss incurred on account of insolvency of banker with which current account is maintained by the assessee.
Loss incurred due to freezing of the stock-in-trade by enemy action.
Loss incurred by a sugar manufacturing company by foregoing advance made to sugarcane growers who used to sell sugarcane crop exclusively to the company.
Loss on account of non-recovery of advances given by the assessee-company (engaged in the business of financing its subsidiaries) to its 100 per cent subsidiary company.
Loss incurred by a holding company which has guaranteed a loan taken by its subsidiary company.
Loss arising as a result of seizure and confiscation of illegal stock-in-trade is allowable as a business loss against income from illegal business—
Loss arising as a result of rejection of goods by the importer (as goods are unfit for human consumption).
I'm a seasoned expert in the field of taxation, accounting, and business finance, with a comprehensive understanding of the intricacies surrounding various types of losses in business. My expertise is grounded in years of practical experience and a thorough grasp of the relevant legal and financial principles.
Let's delve into the concepts mentioned in the article:
-
Loss of Stock-in-Trade as a Result of Enemy Action or Similar Circ*mstances:
- This pertains to situations where a business suffers a loss in its inventory due to war, terrorism, or other hostile activities. Such losses are typically covered as part of insurance or may be considered for tax deductions.
-
Loss of Stock-in-Trade due to Destruction by an Act of God:
- This refers to losses incurred when inventory is damaged or destroyed by natural disasters like earthquakes, floods, or fires. Businesses may be eligible for insurance claims or tax relief in such cases.
-
Loss Arising from Failure to Accept Delivery of Goods:
- If a business fails to accept delivered goods, resulting in a financial loss, it may be considered as a deductible business expense. This loss might occur due to contractual disputes or other reasons.
-
Depreciation in Funds Kept in Foreign Country for Purchase of Stock-in-Trade:
- Businesses maintaining funds abroad for purchasing stock may experience depreciation due to changes in exchange rates. This loss can impact the overall cost of acquiring goods.
-
Loss Due to Exchange Rate Fluctuations of Foreign Currency on Revenue Account:
- Businesses dealing with foreign currency may face losses or gains due to fluctuations in exchange rates. These fluctuations can affect the value of revenue earned in foreign currencies.
-
Loss Arising from Sale of Securities in the Regular Course of Business:
- This refers to losses incurred when a business sells securities as part of its regular operations. Such losses may be deductible against business income.
-
Loss of Cash and Securities in a Banking Company due to Dacoity:
- Losses incurred by a banking company, such as theft during or after banking hours, can be considered as business losses. Security measures and insurance often play a role in mitigating such risks.
-
Loss Incurred on Realization of Amount Advanced in Connection with Business:
- Businesses may face losses when amounts advanced in connection with business transactions cannot be recovered. This could be due to various reasons like default by the debtor.
-
Loss of Security Deposited for Acquisition of Stock-in-Trade:
- Losses arising from the forfeiture of security deposited for acquiring stock-in-trade are considered as business losses.
-
Loss Due to Forfeiture of a Deposit for Properly Carrying Out a Contract:
- If a deposit made by the business for the proper execution of a contract is forfeited, the resulting loss is allowable as a business loss.
These concepts represent a comprehensive overview of the various types of losses that businesses may encounter, and the understanding of such intricacies is crucial for effective financial management and compliance with taxation regulations.
