https://www.taxtmi.com/caselaws?id=762111 ITAT Mumbai held that embezzlement loss by employee is allowable deduction under Section 28(i) rather than Section 37(1). Assessee initially claimed fraudulent expenses under Section 37(1) but later discovered employee embezzlement. Despite revenue's objection to incorrect classification, tribunal found embezzlement loss deductible citing CBDT Circular and HC precedents. Since embezzled amount was not recovered during assessment year and assessee offered recovered sum to tax later, addition was unjustified. Appeal decided in assessee's favor. en-us Tue, 19 Nov 2024 00:00:00 +0530 Sat, 23 Nov 2024 12:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762111 ITAT Mumbai held that embezzlement loss by employee is allowable deduction under Section 28(i) rather than Section 37(1). Assessee initially claimed fraudulent expenses under Section 37(1) but later discovered employee embezzlement. Despite revenue's objection to incorrect classification, tribunal found embezzlement loss deductible citing CBDT Circular and HC precedents. Since embezzled amount was not recovered during assessment year and assessee offered recovered sum to tax later, addition was unjustified. Appeal decided in assessee's favor. Case-Laws Income Tax Tue, 19 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762111