T.A. QUERESHI vs COMMISSIONER OF INCOME TAX, BHOPAL

The Supreme Court addressed the issue of whether a medical practitioner can claim a deduction for heroin seized as a business loss under the Income Tax Act, specifically referencing Section 37. The Court held that possession of heroin, being illegal under the NDPS Act, cannot be considered stock in trade, and thus, the loss cannot be deducted from taxable income. The High Court's decision to allow the deduction was set aside, affirming that illegal activities cannot yield tax benefits.