Law:

Section:

Section 28(i), read with section 69A of the Income-tax Act, 1961 - Business loss/deductions - Allowable as - Assessment year 1992-93 - Assessee was in lawful business of making gold ornaments from gold supplied by his clients - During search at his business premises, certain foreign-marked gold bars were recovered and seized which, later on, were confiscated by customs authorities - Assessing Officer treated value of confiscated gold bars as income of assessee under section 69A - Assessee claimed that as gold was confiscated and never released by customs authorities, value of same should be allowed as business loss - Whether when assessee had committed infraction of law by smuggling gold into country, loss caused to him pursuant to confiscation of contraband gold could be said to be a trading or commercial loss connected with or incidental to his business - Held, no - Whether deemed income of assessee under section 69A could be set off against loss due to confiscation of foreign gold bars - Held, no Section 69A of the Income-tax Act, 1961 - Unexplained moneys - Assessment year 1992-93 - Whether expression 'income' as used in section 69A has wide meaning which means anything which came in or resulted in gain; it cannot be read only as business income - Held, yes Words & Phrases : 'Income' as occurring in section 69A of the Income-tax Act, 1961 FACTS The assessee was in the business of making gold ornaments from the gold supplied to him by his clients. During search at his business premises, seven foreign-marked gold bars were recovered and seized. The customs authorities confiscated the said gold bars and also imposed penalty upon the assessee. In the assessment proceedings, the Assessing Officer treated the value of confiscated gold bars as income of the assessee under section 69A on the assumption that he was the owner of the said gold bars. On appeal, the Commissioner (Appeals) upheld the assessment order. On appeal to the Tribunal, the assessee contended that even assuming that the said amount could be added to his income under section 69A, as the gold had been confiscated and never returned by the customs authorities, same should be treated as business…

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