Tariff classification of vehicle gear components follows the specific gearing entry, displacing motor-vehicle parts classification and related liabili...
Necessary-party requirements limit impleadment of independent entities, while deferred consideration does not create an appealable adverse determinati...
Food supplement classification requires common parlance and authoritative tests, preventing treatment as proprietary Ayurvedic medicines without suppo...
Specified regulatory authority income receives conditional tax exemption, subject to non-commercial activity, unchanged income character, and return f...
Tax exemption for regulatory authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and return-filing...
Misappropriation of funds by an employee led to the assessee claiming expenses u/s 37(1) of the Act, which were later discovered to be embezzlement. The assessee suffered a loss due to the employee's fraudulent actions. The CBDT Circular No. 35-D states that losses arising from embezzlement are allowable u/s 28(i) of the Act. The revenue contended that the claim should be u/s 28 instead of Section 37(1). The assessee offered the recovered amount of Rs. 229 lakhs to tax but had not recovered the impugned amount during the assessment year. The addition was unjustified as the debited amount, though not fulfilling Section 37(1) expenses, was related to an allowable embezzlement loss. Relying on Bombay Forgings Pvt Ltd and G.G. Dandekar Machine Works Ltd cases, the assessee was eligible for deduction due to embezzlement loss. The Appellate Tribunal ruled in favor of the assessee as the revenue failed to prove recovery during the assessment year.
Misappropriation of funds by an employee led to the assessee claiming expenses u/s 37(1) of the Act, which were later discovered to be embezzlement. The assessee suffered a loss due to the employee's fraudulent actions. The CBDT Circular No. 35-D states that losses arising from embezzlement are allowable u/s 28(i) of the Act. The revenue contended that the claim should be u/s 28 instead of Section 37(1). The assessee offered the recovered amount of Rs. 229 lakhs to tax but had not recovered the impugned amount during the assessment year. The addition was unjustified as the debited amount, though not fulfilling Section 37(1) expenses, was related to an allowable embezzlement loss. Relying on Bombay Forgings Pvt Ltd and G.G. Dandekar Machine Works Ltd cases, the assessee was eligible for deduction due to embezzlement loss. The Appellate Tribunal ruled in favor of the assessee as the revenue failed to prove recovery during the assessment year.
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