https://www.taxtmi.com/caselaws?id=347561 The High Court set aside and quashed the orders of the Income Tax Appellate Tribunal, ruling in favor of the assessee. The court emphasized that embezzlement losses should be allowed as deductions in the year they are discovered, not merely when detected, as per the Central Board of Direct Taxes circular. The distinction between "detection" and "discovery" was crucial in determining the timing of claiming such deductions, with the understanding that the loss becomes crystallized when it is realized that the embezzled amount cannot be recovered. en-us Tue, 29 Aug 2017 00:00:00 +0530 Wed, 06 Sep 2017 18:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=347561 The High Court set aside and quashed the orders of the Income Tax Appellate Tribunal, ruling in favor of the assessee. The court emphasized that embezzlement losses should be allowed as deductions in the year they are discovered, not merely when detected, as per the Central Board of Direct Taxes circular. The distinction between "detection" and "discovery" was crucial in determining the timing of claiming such deductions, with the understanding that the loss becomes crystallized when it is realized that the embezzled amount cannot be recovered. Case-Laws Income Tax Tue, 29 Aug 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=347561