Embezzlement loss deduction in year of discovery raised no referable question of law under the applicable circular.

A Tribunal's allowance of deduction for employee embezzlement loss in the year of discovery was treated as consistent with the Board's circular, which recognises such loss as an admissible business loss. On that basis, the Delhi High Court found no independent referable question of law arising from the Tribunal's conclusion. The reference petition was dismissed because the issue was covered by the settled legal position reflected in the circular and did not call for further legal determination.

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Issues: Whether a referable question of law arose from the Tribunal's order allowing deduction for embezzlement loss in the year of discovery.

Analysis: The Tribunal had allowed the claim by applying the Board's circular, which treated employee embezzlement as an admissible business loss and indicated that such loss should be allowed in the year in which it is discovered. On the facts presented, the Court found no independent question of law arising from that conclusion.

Conclusion: No question of law arose from the Tribunal's decision, and the reference petition was dismissed.

Ratio Decidendi: Where the Tribunal's conclusion is grounded in the settled legal position and the applicable circular, no referable question of law arises for consideration.

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