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2002 (8) TMI 90 - ANDHRA PRADESH HIGH COURTBusiness Expenditure - "Whether the loss of Rs. 1,10,534 has to be allowed as deduction from the total income for the assessment year 1974-75?" - In view of the ratio laid down by the Supreme Court in the decision in Haji Aziz and Abdul Shakoor Bros. v. CIT and in the facts and circumstances of the case, we have no hesitation to say that the loss sustained by the assessee as a result of the confiscation of the rice, which was confirmed by the Supreme Court, is not a commercial loss arising out of trade and it is only due to infraction of law by the assessee, therefore, such loss cannot be allowed as a deduction under the provisions of the Income-tax Act. - Accordingly, we answer the reference in favour of the Revenue and against the assessee.
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