Loss Of FD Investments Doesn't Qualify As 'Trading Loss' For Deduction From Income U/S 28 Of Income Tax Act: Telangana HC

The Telangana High Court ruled that losses from fixed deposit investments cannot be classified as trading losses eligible for deduction under Section 28 of the Income Tax Act. The petitioner had sought to offset such losses against trading income, but the court held that fixed deposits are capital investments and unrelated to business operations. This decision clarifies the distinction between business expenses and capital losses, ensuring accurate tax treatment.