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2022 (2) TMI 645 - AT - Income TaxDeduction being the provision created on account of fraud committed by one of its employees which caused loss to the leasing company - Disallowance of provision made by the assessee on account of settlement with the leasing company on the ground that no deduction towards the provision for unascertained liability is allowable - HELD THAT:- As relying on BHARAT EARTH MOVERS VERSUS COMMISSIONER OF INCOME-TAX [2000 (8) TMI 4 - SUPREME COURT] and M/S VODAFONE ESSAR SOUTH LTD. [2014 (11) TMI 804 - DELHI HIGH COURT] we are of the considered opinion that the assessee is entitled to deduction being the provision created on account of fraud committed by one of its employees which caused loss to the leasing company. We, therefore, set aside the order of the CIT(A) and direct the AO to allow the deduction in full. - Decided in favour of assessee.
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