TaxTMI 
TaxTMI 
1984 (12) TMI 15
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....uestions of law under section 256(1) of the Income-tax Act, 1961 : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in determining that the assessee was not entitled to set off the loss arising on the confiscation of the gold against the income brought to tax in respect of such gold, under section 69A of the Income-tax Act, 1961 ? (2) Whether, on....
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....gument advanced on behalf of the assessee was that Rs. 14,500 should be considered as a loss arising out of the confiscation of the gold and should be set off against the assessed income in respect of the gold. In that connection, a decision of the Punjab and Haryana High Court in CIT v. Piara Singh [1972] 83 ITR 678 was cited. The Tribunal did not accept the ratio of that decision. On the contrar....
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....r, held: "..... The evidence on record itself shows that both the assessee and Ramaiah Setty were dealing in smuggled gold and that they have dealings with each other . . ." It is now not in dispute that the assessee was engaged in smuggling activities and was dealing in smuggled gold. The decision of the Punjab and Haryana High Court on which the Tribunal did not place any reliance has been tak....