T.A. Quereshi v CIT (SC) [2006 (287) ITR 547] (06/12/2006)

Income Tax Act, s. 254 (2), 37 – Held, the High Court has adopted an emotional and moralapproach rather than a legal approach - Law is different from morality - The explanationto s. 37 has really nothing to do with the present case as it is not a case of a businessexpenditure, but of business loss - Once it is found that the heroin seized formed part ofthe stock in trade of the assessee, it follows that the seizure and confiscation of suchstock in trade has to be allowed as a business loss - Impugned judgment of the High Court Income Tax Act, s. 254 (2), 37 – Held, the High Court has adopted an emotional and moral approach rather than a legal approach - Law is different from morality - The explanationto s. 37 has really nothing to do with the present case as it is not a case of a businessexpenditure, but of business loss - Once it is found that the heroin seized formed part ofthe stock in trade of the assessee, it follows that the seizure and confiscation of suchstock in trade has to be allowed as a businessloss - Impugned judgment of the High Court

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