https://www.taxtmi.com/caselaws?id=71029 A confiscation loss can be treated as a business loss only if the assessee was actually carrying on a smuggling business. On the facts examined, the assessee described himself as a carrier of gold bars for delivery to another person, consistently denied any smuggling business, and did not claim such business in the income-tax return or reply to notice. The customs confiscation proceedings under the Gold Control Act did not establish purchase and sale activity in smuggled gold. The earlier authorities cited were held inapplicable. The loss was therefore not allowable as a business loss and could not be set off against income assessed as unexplained investment under section 69A. en-us Tue, 29 Jul 1997 00:00:00 +0530 Thu, 20 Jun 2013 17:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71029 A confiscation loss can be treated as a business loss only if the assessee was actually carrying on a smuggling business. On the facts examined, the assessee described himself as a carrier of gold bars for delivery to another person, consistently denied any smuggling business, and did not claim such business in the income-tax return or reply to notice. The customs confiscation proceedings under the Gold Control Act did not establish purchase and sale activity in smuggled gold. The earlier authorities cited were held inapplicable. The loss was therefore not allowable as a business loss and could not be set off against income assessed as unexplained investment under section 69A. Case-Laws Income Tax Tue, 29 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71029