Words and Phrases - "sustained (capital losses)"

In computing its undistributed income on hand at the end of its 1949 taxation year, the taxpayer was entitled to deduct "all capital losses sustained" by it. The taxpayer was not entitled to a deduction in respect of a decline in the value of shares. "The phrase 'capital losses sustained' or its equivalent appears in several provisions of the statute in a context from which it is apparent that, within the conceptions of accountancy underlying the Act, it means actually realized ... That state of things is realized upon a sale; it can also be said to be realized in the case of stock in a company which is hopelessly insolvent and has ceased business."