RAJMAL LAKHICHAND v.
ACIT (Pune - Trib.)
In the instant case, during search
conducted in the business premises of assessee, a jeweller, certain
stock of silver was confiscated by customs officials. Assessee claimed
deduction on account of loss occurred due to confiscation of silver in
relevant assessment year. Said claim was disallowed by the Assessing Officer as well as
the CIT(A).
The Tribunal held in favour of assessee as under:
The
business loss on account of confiscation could be claimed and allowed in
the year in which the assessee prima facie loses the hope for recovery
of the goods. Thus, the assessee’s claim of loss was crystallized in the
year under consideration when assessee received the order of CEGAT.
Therefore, the loss incurred due to confiscation of silver stock was to
be allowed as assessee was in the business of silver trade and loss had
been suffered during the course of its business.
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