https://www.taxtmi.com/caselaws?id=58831 The Appellate Tribunal allowed the appeal, permitting the deduction claimed by the assessee for embezzlement losses incurred in the assessment year 1972-73. The Tribunal emphasized that such losses, if incidental to the business and non-capital in nature, are deductible based on commercial principles. It was noted that the deduction is allowable when restitution is unlikely and the amount is considered irrecoverable, irrespective of the year of the embezzlement. The Tribunal directed the verification of the embezzlement loss amount before allowing the deduction, highlighting that the criminal court's outcome does not determine the tax treatment of the loss. en-us Fri, 21 Oct 1983 00:00:00 +0530 Wed, 22 Dec 2010 14:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58831 The Appellate Tribunal allowed the appeal, permitting the deduction claimed by the assessee for embezzlement losses incurred in the assessment year 1972-73. The Tribunal emphasized that such losses, if incidental to the business and non-capital in nature, are deductible based on commercial principles. It was noted that the deduction is allowable when restitution is unlikely and the amount is considered irrecoverable, irrespective of the year of the embezzlement. The Tribunal directed the verification of the embezzlement loss amount before allowing the deduction, highlighting that the criminal court's outcome does not determine the tax treatment of the loss. Case-Laws Income Tax Fri, 21 Oct 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58831