https://www.taxtmi.com/caselaws?id=8239 Loss from confiscation of currency notes used in smuggling was treated as a business loss, not as an expenditure for an illegal purpose. The High Court reasoned that illegal activity can still constitute business for income-tax purposes, and that if profits from such activity are taxable, incidental losses must also be recognised. Distinguishing cases involving payments made to secure release of acquired goods, the court held that the confiscated amount arose in the course of the smuggling business and was therefore an allowable deduction under section 10(1) of the Income-tax Act, 1922. en-us Thu, 05 Nov 1970 00:00:00 +0530 Mon, 06 Apr 2009 11:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8239 Loss from confiscation of currency notes used in smuggling was treated as a business loss, not as an expenditure for an illegal purpose. The High Court reasoned that illegal activity can still constitute business for income-tax purposes, and that if profits from such activity are taxable, incidental losses must also be recognised. Distinguishing cases involving payments made to secure release of acquired goods, the court held that the confiscated amount arose in the course of the smuggling business and was therefore an allowable deduction under section 10(1) of the Income-tax Act, 1922. Case-Laws Income Tax Thu, 05 Nov 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8239