Section 28 – Loss incidental to illegal business is allowable

The facts giving rise to the Appeal  are that :- The appellant – an  individual deals in bullion and gold jewellery.   On 12.01.1999, a search was carried out on the residential as well as the business premises of  the  appellant and substantial quantities of bullion was found and seized by   the Income Tax Department. On 18.01.1999, notice under Section 158BC was issued and in response, the return for the block period was furnished on 04.03.1999 by the appellant disclosing the total undisclosed income at Rs.1,39,75,834/-. It is the case of the appellant that the Assessing Officer di...