Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: list of goods taxed at 4% :: VAT RATES :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: TDS :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: empanelment :: cpt :: ACCOUNTING STANDARD :: articles on VAT and GST in India
News Headlines »
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol
 6 Tax notices you may get and how to cope with them Income Tax Notice
 Deadline to pay advance tax ends tomorrow: Here is a step-by-step guide
  Central Goods and Services Tax (Second Amendment) Rules, 2018
 Income Tax Return Filing Deadline: Waiver On LTCG Tax To End On 31 March. Details Here
 Income tax returns (ITR) filing: Top mistakes that can be very costly
 Income Tax Return (ITR) filing: 6 last-minute things you can still do to save tax for FY17-18
 How to file Income Tax Returns online in 5 simple steps

Seizure of drugs is trade loss for IT assessment: SC
December, 11th 2006

In an interesting verdict, the Supreme Court has held that for income tax assessment, loss in business has to be considered even if the activity involved illegal manufacturing and selling of contraband drugs forming part of trade stock.

The ruling was delivered while deciding the case of a doctor, who was arrested with a heroin worth Rs 5.5 lakh and had sought deduction of income on the ground that contraband seized from him forms part of his stock in trade and there was a loss on account of confiscation.

"Business losses are allowable on ordinary commercial principles in computing profits. Once it is found that the heroin seized formed part of the stock in trade of the assessee, it follows that the seizure and confiscation of such stock in trade has to be allowed as business loss," a Bench comprising Justice S B Sinha and Justice Markandey Katju said.

While concurring with the findings of Income Tax Appellate Tribunal (ITAT) allowing the deduction as business loss, the Bench in a recent ruling set aside the Madhya Pradesh High Court order denying income tax exemption to the doctor.

The ITAT had rejected the contention of the doctor that he was only earning income from his medical profession and was not doing any illegal activity of manufacturing and selling of heroin. However, it had held that since the heorin seized was his stock in trade it was implicit that the Tribunal reiterated the view that the he was doing the business of manufacturing and sale of heroin.

On appeal by the IT Department, the High Court had reversed the Tribunal's decision. Holding that the High Court's judgement which talked about the ethics of medical profession cannot be sustained, the apex court Bench said "we fully agree that the doctor was committing a highly immoral act in illegally manufacturing and selling heroin. However, cases are to be decided by court on legal principles and not on ones own moral views. Law is different from morality."

It observed that "the High Court has adopted an emotional and moral approach rather than a legal approach," it observed. The court relied on its 1980 judgment in the Piara Singh case in which the deduction was allowed on the loss arising out of confiscation of currency notes from an alleged smuggler.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions