http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 9
PETITIONER: M/S. HAJI AZIZ AND ABDUL SHAKOOR BROS.
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX, BOMBAY CITY II
DATE OF JUDGMENT: 24/11/1960
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. HIDAYATULLAH, M. SHAH, J.C.
CITATION: 1961 AIR 663 1961 SCR (2) 651 CITATOR INFO : RF 1961 SC 668 (8) R 1964 SC1722 (9) D 1969 SC 288 (12) RF 1972 SC 391 (6) RF 1980 SC1271 (7)
ACT: Income-tax--Business deduction--Import of goods by steamer--Government notification prohibiting import by steamer--Payment of penalty in lieu of confiscation--Allowable expenditure--Commercial expense--Sea Customs Act, 1878 (8 of 1878), s. 167(8)--Indian Income-tax Act, 1922 (11 of 1922), S. 10(2)(XV).
HEADNOTE: The appellant firm imported dates from abroad partly by steamer and partly by country craft. At the relevant time import of dates by steamers had been prohibited by Government (1) [1945] 1 3 I.T.R. Supp. 1. (2) [1956] S.C.R. 551. 652 notification, and the consignments which were imported by steamer were, therefore, confiscated by the customs authorities under s. 167, item 8, of the Sea Customs Act, i878, but under s. 183 of the Act the appellant was given an option to pay Rs. 82,250 as penalty in lieu of confiscation. The appellant paid the amount and got the dates released. Before the Income-tax aut...