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2004 (11) TMI 54 - HC - Income TaxAddition on account of income from undisclosed sources – Assessee, doctor – loss on account of seizure - assessee claimed that the value of the contraband articles (heroin) seized from his possession works out to Rs. 5,50,000. He, therefore, claimed that since heroin seized from him forms part of the stock-in-trade and hence, its loss on account of seizure is an allowable deduction while computing his profits and gains of business/profession – Held that assessee had nothing to do with the contraband article-heroin for carrying on his profession. It is an admitted fact that the possession of heroin is an offence under the NDPS Act. In this view, the rigour of the Explanation to section 37 was fully satisfied and hence the question of claiming any deduction for the value of the seized article did not arise nor was the assessee entitled to claim any such deduction who was found indulging in such heinous and illegal business – Held that Tribunal was not justified in allowing the deduction of Rs. 5,50,000 out of the gross total income of the assessee.
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