A son of Ubayd bin al-Abras says: I was present with Sayyiduna Ali (may Allah be pleased with him) when a man was brought to him who had snatched a garment from another man. The snatcher said: I recognize it. So Sayyiduna Ali (may Allah be pleased with him) did not cut off his hand.
Hadith Referenceالسنن الكبرى للبيهقي / كتاب السرقة / 17294