https://www.taxtmi.com/caselaws?id=8676 Contraband gold confiscated under customs law was held not to give rise to a deductible business loss. A loss is allowable only if it springs directly from the carrying on of the business or is incidental to it; confiscation for breach of law is a proceeding in rem against the offending property and operates as a statutory penalty, not an ordinary trading loss. The fact that income from illegal activity may be taxable does not make every connected loss commercial. The claimed deduction was therefore disallowed, and the reference was answered in favour of the Revenue. en-us Thu, 08 Apr 1971 00:00:00 +0530 Wed, 20 May 2009 17:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8676 Contraband gold confiscated under customs law was held not to give rise to a deductible business loss. A loss is allowable only if it springs directly from the carrying on of the business or is incidental to it; confiscation for breach of law is a proceeding in rem against the offending property and operates as a statutory penalty, not an ordinary trading loss. The fact that income from illegal activity may be taxable does not make every connected loss commercial. The claimed deduction was therefore disallowed, and the reference was answered in favour of the Revenue. Case-Laws Income Tax Thu, 08 Apr 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8676