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2003 (10) TMI 6 - HC - Income TaxLegitimate expenses of the business – illegal business - Whether, Tribunal had any material for the conclusion that the assessee was carrying on the illegal business of smuggling of gold? - Whether Tribunal was justified in holding that the loss arising to the assessee due to confiscation of gold by the customs authorities is to be deducted from the amount included in his income as unexplained investment?" - finding of fact recorded by the Tribunal and the entire facts of the case go to show that the assessee had been carrying on illegal business of smuggling. The consequences of this finding recorded are inevitable. The confiscation of the gold of the assessee is a loss therefrom which has to be deducted from the amount included as unexplained investment. - Revenue cannot be heard to say that it will bring the loss to tax. It can only tax profits of a trade or business and that cannot be done without deducting the losses and the legitimate expenses of the business – revenue appeal rejected
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