Shri Madan B. Lokur, C.J.

The grievance of the Revenue is with regard to an order dt.29.12.2010 passed by the Income Tax Appellate Tribunal, Hyderabad Bench ‘B’, Hyderabad, in I.T.A. No.469/Hyd/2009, relevant for the assessment year 2005-2006.

2. The assessee is the proprietor of a Pharmaceutical Company. During the course of his business, he exported bulk drugs to Mexico through San Diego Port, California, United States of America (USA). The goods were cleared by the Indian customs authorities and reached California, USA. During the transit from California to Mexico, the goods were seized by the Customs and Border Protection Force of the USA for some statutory violations.

3. The assessee claimed business loss before the Assessing Officer as a bad debt and alternatively loss of stock in trade. The Assessing Officer decided against the assessee. The Commissioner of Income Tax (Appeals) also decided against the assessee which led him to file an appeal before the Tribunal.

4. The Tribunal found as a matter of fact that the goods were stock in trade of the assessee. It was also found as a fact that the goods were confiscated by the authorities in USA after they were cleared