Judgment

SUBBA RAO, J.: This appeal of certificate raises the question whether loss of cash by dacoity is an admissible deduction under Section 10(1) of the Indian Income-tax Act, 1922, hereinafter called the Act, in computing the assessee s income in a banking business.

2. The facts relevant to the question raised may be briefly stated. The assessee is the Nainital Bank Limited. It is a public limited company which carrier on the business of banking. It has various branches and one of them is situated at Ramnagar. In the usual course of its business large amounts were kept in various safes in the premises of the Bank. On June 11, 1951, at about 7 p.m. there was a dacoity in the Bank and the dacoits carried away the cash amounting to Rs. 1,06,000 / - and some ornaments etc. pledged with the Bank. For the assessment year 1952-53 the Bank claimed the said amount as a deduction in computing its income from the banking business on the ground that it was a trading loss. The Incometax Officer disallowed the claim on the ground that it was not a loss incidental to the banking business. On appeal, the Appellate Assistant Commissioner, of Income-tax, and on further appeal, the Income-tax Appe