Held that, as the transactions made by the assessee were peculiar and were not transacted in the ordinary course of business and there is nothing to show why the amount was paid and why it was credited to the account of HM (even though the account payee cheques were in the name of assessee bank), the repayment made by assessee bank, even after incurring a loss, cannot be considered as deductible business loss. (AY. 2002-03)
Standard Chartered Grindlays PTY Ltd. v. DDIT(IT) (2019) 183 DTR 105 / 201 TTJ 754 (Delhi)(Trib.)
S. 28(i) : Business loss-Genuineness of transaction-Amount paid by National housing bank (NHB) to assessee bank-but credited by assessee to the account of one Shri Harshad Mehta (HM)-subsequently such transaction got burnt in the fire of securities scam-Repayment of such amount to NHB-not allowed as business loss. [S. 44C]