https://www.taxtmi.com/caselaws?id=6614 Business losses caused by employee embezzlement are deductible where entrustment of cash or business instruments to employees is necessary in the ordinary course of business, the loss directly arises from that activity, and recovery is futile. Systematic misappropriation by employees of entrusted cash and share-transfer stamps was treated as an actual, irrecoverable trading loss. Management negligence did not alter the loss's business character because delegation of those duties was inherent in the business. The assessable income deduction was allowed to the extent of the quantified embezzlement loss. en-us Thu, 25 Mar 1965 00:00:00 +0530 Tue, 27 Jan 2009 16:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6614 Business losses caused by employee embezzlement are deductible where entrustment of cash or business instruments to employees is necessary in the ordinary course of business, the loss directly arises from that activity, and recovery is futile. Systematic misappropriation by employees of entrusted cash and share-transfer stamps was treated as an actual, irrecoverable trading loss. Management negligence did not alter the loss's business character because delegation of those duties was inherent in the business. The assessable income deduction was allowed to the extent of the quantified embezzlement loss. Case-Laws Income Tax Thu, 25 Mar 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6614