State with brief reasons whether the following losses sustained during the year while carrying a business be allowable while computing the income under the head "Profits and gains of business or profession": Robbery or d

Losses / Bad debts which are directly incidental to the business or profession of the assessee are allowable as per provisions contained under section 36/37 of the Income Tax Act 1961. Further as per the provision of section 37 of the Income Tax Act, Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession". Accordingly allowability of the given losses is as under: Robbery or Dacoity and loss of money in a bank branch: Losses caused by robbery or dacoity is not deductible, but if it is incidental to business, it will be allowed as a deduction which depends upon the specific circumstances and the condition of being occurring or taking place. Any loss due to robbery in a bank branch will be allowed as deduction considering it incidental to business while computing the income under the head "Profit and Gains from Business and Profession as the bank is under an obligation to maintain some cash outside the strong room for payments to customer.