|
II. Direct Tax Case Law:
Bipinchandra K. Bhatia Vs. DCIT, Tax Appeal No. 107 of 2004, Date of Order: 16.10.2014, Gujarat High Court
Whether the loss incidental to the illegal business carried on by the assessee is allowable u/s 28 of the Income Tax act, 1961
Held_Yes
In brief, the assessee deals in bullion and gold jewellery and a
search was carried out on the residential as well as the business
premises, in which substantial quantities of bullion was found and
seized by the department. The assessee claimed deduction on account of
gold seized by the Custom Authorities as allowable business expenditure
under the Act. Whereas, the CIT(A) and Hon’ble Tribunal confirm the
disallowance. The Hon’ble high court has held that the loss which was
incurred during the course of business even if the same is illegal is
required to be compensated and for the loss suffered by the assessee.
(Case Referred: Dr. T.A. Quereshi v. CIT reported in 287 Income Tax Reports 547)
|
New User? 
Subscribe Now