Court :
Supreme Court of India
Brief :
The Supreme Court has set aside the Rajasthan High Court's order of allowing the loss claimed by assessee on account of confiscation of silver bars by the Customs department, as 'business loss' under Section 37(1) of the Income Tax Act, 1961. The assessee was carrying on a legitimate business of dealing in silver and in an attempt to make larger profits, he indulged into smuggling of silver. Since its business was not smuggling of silver bars, the said loss from confiscation of the smuggled items cannot be said to be a loss connected with or incidental to the assessee's business for claiming deduction under Section 37 of the Income Tax Act, 1961.
Citation :
CIVIL APPEAL NOS.7689-90 OF 2022
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