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Direct tax related question.....reply plz

Rahul Bansal (Finalist) (35929 Points)

23 August 2012

Loss arising on account of confiscation of heroin ( drugs) is a business loss even it is illegal business. Such loss can be set-off against the profits of legal business.

My question is that whether the above statement holds true or not ? Please Comment.

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3 Replies

* Krishna * (CA Student) (6149 Points)
Replied 23 August 2012

Going through below link will put an end to your query.

https://articles.economictimes.indiatimes.com/2006-12-10/news/27436478_1_heroin-illegal-manufacturing-trade

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CA SHABIR (CA) (336 Points)
Replied 23 August 2012

Yes Rahul. As per my opinion ur statement is correct and can be setoff against any other business loss. My this decision is based on Apex Court's decision in the case of T.A. Qureshi. In this case it was held that the loss of herione is a business loss and can be climed as deduction. Hope I answer the question.

Thanks

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