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2019 (7) TMI 1220 - HC - Income TaxAllowability of business loss - embezzlement of the cash by director/employee of the Company - ITAT allowed the claim of the assessee - HELD THAT:- The embezzlement by one of the Directors or an employee of the business of the Assessee Company during the ordinary course of business can be a business loss of the Assessee irrespective of criminal prosecution of the accused director/employee of the Company. The final fate of the criminal proceedings or recovery of the amount in question would not determine the claim of the Assessee in the present year writing off the same as a business loss. Tribunal had rightly held it to be a business loss as it was treated to be only a pilferage of the company funds by an employee or a Director on the Board of Company. Therefore, such findings of facts by the Tribunal do not give rise to any substantial question requiring our further consideration u/s 260A. Thus we do not find any merits in the Appeal filed by the Revenue and the same is liable to be dismissed.
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