2012 (6) TMI 508

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....R RESPONDENT: None appeared   JUDGMENT: (per the Hon'ble the Chief Justice Shri Madan B. Lokur)   The grievance of the Revenue is with regard to an order dt.29.12.2010 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad, in I.T.A. No.469/Hyd/2009, relevant for the assessment year 2005-2006. 2. The assessee is the proprietor of a Pharmaceutical Company. During t....

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....he goods were confiscated by the authorities in USA after they were cleared for export by the Indian customs authorities. 5. The Tribunal relied upon two decisions of the Supreme Court. The later decision is that of T.A. Quereshi (Dr.) v. Commissioner of Income Tax, Bhopal1. In that case, the assessee was manufacturing and selling heroin. On a raid having been conducted on his premises, the equip....

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...., it has to be allowed as a business loss. 8. Following the view taken by the Supreme Court in the above decisions, the Tribunal held that the confiscation of the pharmaceutical drugs exported by the assessee must be treated as a loss of stock in trade. 9. At this stage, it may be mentioned that the Assessing Officer, while deciding against the assessee, relied upon a decision of a Division Benc....