TaxTMI 
TaxTMI 
1962 (11) TMI 88
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....G. Rama Iyer JUDGMENT GOVINDAN NAIR J.- 1. The facts of this reference under section 66(1) of the Indian Income-tax Act, 1922, are stated in detail in the statement of the case and the questions that have been referred to us are: "(1) Whether on the facts and in the circumstances of the case the removal of ₹ 18,000 by one of the employees of the bank was only theft or constituted e....
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....me to know of this decision of the board even before this was communicated to him. In the meantime, the said Francis left Thathamangalam on April 6, 1960, after entrusting the key that he had with him with the peon of the bank. April 7, 8 and 9 were holidays and the bank was to open only on the 10th. On the 7th, Ittikkuru obtained the key that was entrusted to the peon from him, sent the peon away....
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....o, it has to take the necessary risk of such employees embezzling money and even committing theft. The money that was taken is admittedly the stock-in-trade of the assessee, a banking company. The fact that the money was taken not during office hours, but on a holiday, does not affect the question for decision if the incurring of the loss was incidental to the carrying on of the business. We have ....