https://www.taxtmi.com/caselaws?id=187362 A bad debt deduction was unavailable because the amount was not written off in the books and there was no proof that the debt had become irrecoverable in the accounting year. The claim was therefore disallowed. Losses from embezzlement or defalcation were also not deductible as business loss for that year, since such a loss becomes allowable only when it has crystallised as an actual and present loss on the facts of the case; no rigid rule fixes it either at the date of misappropriation or only when recovery becomes impossible. On the facts, the loss had not been shown to have crystallised in the relevant year, so the deduction failed. en-us Fri, 22 Apr 1960 00:00:00 +0530 Wed, 19 Oct 2016 15:37:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187362 A bad debt deduction was unavailable because the amount was not written off in the books and there was no proof that the debt had become irrecoverable in the accounting year. The claim was therefore disallowed. Losses from embezzlement or defalcation were also not deductible as business loss for that year, since such a loss becomes allowable only when it has crystallised as an actual and present loss on the facts of the case; no rigid rule fixes it either at the date of misappropriation or only when recovery becomes impossible. On the facts, the loss had not been shown to have crystallised in the relevant year, so the deduction failed. Case-Laws Income Tax Fri, 22 Apr 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187362