|DATE:||(Date of pronouncement)|
|DATE:||September 13, 2008 (Date of publication)|
(i) Where the assessee is carrying on an illegal activity which is treated as a business, any loss arising in such business as a result of confiscation by the authorities is an allowable loss. However, where the assessee is carrying on a lawful business, any loss arising as a result of infraction of the law is not allowable.
(ii) The amount assessed as undisclosed income u/s 69A has to be assessed as ‘income from other sources’ and not as ‘business income’.