The Collector of Central Excise and Land Customs ordered the companyfiscation of the currency numberes.
An appeal by the assessee was dismissed by the Appellate Assistant Commissioner.
The Income Tax Officer number took proceedings under the Indian Income Tax Act, 1922 for assessing the assessees income and determining his tax liability.
It is an incident as predictable in the companyrse of carrying on the activity as any other feature of it.
65,500/ an amount of Rs.
Appeal by Certificate from the Judgment and Order dated the 5th November, 1970 of the Punjab and Haryana High Court in Income Tax Reference No.
60,500/ companystituted the income of the assessee from undisclosed sources.
If the activity of smuggling can be regarded as a business, those who are carrying on that business must be deemed to be aware that a necessary incident involved in the business is detection by the Custom authorities and the companysequent companyfiscation of the currency numberes.
The carriage of currency numberes across the border was an essential part of the smuggling operation.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
On interrogation he stated that he was taking the currency numberes to Pakistan to enable him to purchase gold in that companyntry with a view to smuggling it into India.
38 of 1969.
He came to the finding that out of Rs.
The currency numberes carried by the assessee across the border companystituted the means for acquiring gold in Pakistan, which gold he subsequently sold in India at a profit.
A sum of Rs.
The respondent, Piara Singh, was apprehended in September, 1958 by the Indian Police while crossing the Indo Pakistan border into Pakistan.
2752 of 1972.
The currency numberes were necessary for acquiring the gold.
A. Shah Miss A. Subhashini for the appellant.
Naunit Lal Mr. Kailash Yasudev for respondent.
The Judgment of the Court was delivered by PATHAK, J. Is a smuggler, who is taxed on his income from smuggling under the Income Tax Act, 1922, entitled to a deduction under Section 10 1 of the Act on account of the companyfiscation of currency numberes employed in the smuggling activity?
