M.B. ABDULLA vs COMMISSIONER OF INCOME-TAX, KERALA

The Supreme Court dismissed the special leave petition challenging the orders of the Income Tax Appellate Tribunal and the High Court regarding the treatment of Rs.20 Lakhs worth of confiscated gold. The Court held that the real question was whether this amount could be considered as income and if it could be deducted as a business loss under the Income Tax Act, 1961, specifically Section 256(1). The Court found that the Tribunal's view was a possible interpretation of the law, referencing the principles established in C.I.T., Patiala v. Piara Singh and C.I.T., Bombay Scindia Steam Navigation Co. Ltd.