https://www.taxtmi.com/caselaws?id=437031 The Supreme Court ruled in favor of the Revenue, disallowing the deduction of loss due to confiscation as a business loss. The Court upheld the applicability of Section 69A of the Income Tax Act, 1961, regarding unrecorded investments in silver. It clarified that the loss from confiscation could not be considered a business loss as it was a result of smuggling, not incidental to legitimate business activities. The Court also emphasized that Explanation 1 to Section 37(1) applied, prohibiting the deduction of expenses related to illegal activities. The High Court's decision was overturned, and the Revenue's appeals were allowed. en-us Mon, 24 Apr 2023 00:00:00 +0530 Wed, 03 Jun 2026 17:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437031 The Supreme Court ruled in favor of the Revenue, disallowing the deduction of loss due to confiscation as a business loss. The Court upheld the applicability of Section 69A of the Income Tax Act, 1961, regarding unrecorded investments in silver. It clarified that the loss from confiscation could not be considered a business loss as it was a result of smuggling, not incidental to legitimate business activities. The Court also emphasized that Explanation 1 to Section 37(1) applied, prohibiting the deduction of expenses related to illegal activities. The High Court's decision was overturned, and the Revenue's appeals were allowed. Case-Laws Income Tax Mon, 24 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437031