https://www.taxtmi.com/caselaws?id=6614 Whether loss by embezzlement is deductible under Section 10(1) of the Income-tax Act, 1961 depends on whether the loss springs directly from and is incidental to the carrying on of business. The note applies established principles that losses caused by systematic misappropriation by entrusted employees are deductible where entrustment is a necessary incident of the business, the loss is actual and irrecoverable, and recovery is futile; contributory management negligence does not automatically convert the loss into a non-trading item. The analysis concludes the quantified embezzlement loss is allowable to the extent calculated by the tribunal. 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 Whether loss by embezzlement is deductible under Section 10(1) of the Income-tax Act, 1961 depends on whether the loss springs directly from and is incidental to the carrying on of business. The note applies established principles that losses caused by systematic misappropriation by entrusted employees are deductible where entrustment is a necessary incident of the business, the loss is actual and irrecoverable, and recovery is futile; contributory management negligence does not automatically convert the loss into a non-trading item. The analysis concludes the quantified embezzlement loss is allowable to the extent calculated by the tribunal. Case-Laws Income Tax Thu, 25 Mar 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6614