https://www.taxtmi.com/caselaws?id=190880 Embezzlement by an employee entrusted with collection and disbursement duties was treated as a trade loss incurred in the course of business. The loss was deductible in the relevant accounting year when it became actual and certain, even though the amounts had later been reflected in the books as recoverable. The same amount could not be claimed as business expenditure because misappropriated funds are not sums laid out wholly and exclusively for business purposes, and it could not be treated as a bad debt because it was not shown to be a business loan or trading debt. The reference was answered accordingly in favour of the assessee only on the trade-loss issue. en-us Tue, 02 Jan 1951 00:00:00 +0530 Tue, 07 Mar 2017 18:13:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190880 Embezzlement by an employee entrusted with collection and disbursement duties was treated as a trade loss incurred in the course of business. The loss was deductible in the relevant accounting year when it became actual and certain, even though the amounts had later been reflected in the books as recoverable. The same amount could not be claimed as business expenditure because misappropriated funds are not sums laid out wholly and exclusively for business purposes, and it could not be treated as a bad debt because it was not shown to be a business loan or trading debt. The reference was answered accordingly in favour of the assessee only on the trade-loss issue. Case-Laws Income Tax Tue, 02 Jan 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190880