https://www.taxtmi.com/caselaws?id=462625 ITAT Hyderabad allowed the appeal for statistical purposes and remanded the matter to AO for fresh consideration. The assessee claimed deduction under section 37(1) for VAT and CST amounts allegedly misappropriated by tax consultants. Lower authorities denied the claim due to lack of payment proof. ITAT relied on SC precedents in Badridas Daga and Associated Banking Corporation cases, holding that losses from embezzlement by agents are deductible if business-related and incidental. The tribunal directed AO to verify facts regarding the fraud complaint, FIR, and CID report to determine the assessee's entitlement to claim deduction for the misappropriated amounts. en-us Wed, 04 Dec 2024 00:00:00 +0530 Fri, 04 Jul 2025 19:03:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462625 ITAT Hyderabad allowed the appeal for statistical purposes and remanded the matter to AO for fresh consideration. The assessee claimed deduction under section 37(1) for VAT and CST amounts allegedly misappropriated by tax consultants. Lower authorities denied the claim due to lack of payment proof. ITAT relied on SC precedents in Badridas Daga and Associated Banking Corporation cases, holding that losses from embezzlement by agents are deductible if business-related and incidental. The tribunal directed AO to verify facts regarding the fraud complaint, FIR, and CID report to determine the assessee's entitlement to claim deduction for the misappropriated amounts. Case-Laws Income Tax Wed, 04 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462625