Loss on Smuggled Items Not a Business Loss under Income Tax Act: SC

The Supreme Court (SC) set aside an order of the Rajasthan High Court, allowing loss claimed, due to confiscation of silver bars as business loss, under section 37(1) of Income Tax Act, 1961. The SC observed that although the assessee had a legitimate business of dealing in silver he indulged in smuggling of silver which was not the business. Therefore, the loss due to confiscation of smuggled goods cannot be claimed as a business loss.