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2017 (11) TMI 1346 - AT - Income TaxEmbezzlement loss due to siphoning of funds of assessee company by the employees - whether a business loss? - Held that:- No infirmity in the order passed by the Ld.CIT(A) in holding that the embezzlement loss due to siphoning of funds of assessee company by the employees is a business loss allowable u/s. 28 of the Act. The fact that there is embezzlement in the assessee company is not in dispute. The fact that the employees have siphoned off the funds of the assessee company and the assessee has filed criminal complaints against the employees for the frauds committed by them is also not in dispute. Thus, the order passed by the Ld.CIT(A) is a well-reasoned order based on the reliance of various High Courts including the Jurisdictional High Court and the Supreme Court. None of the findings of the Ld.CIT(A) have been controverted by the Revenue. In the circumstances we uphold the order of the Ld.CIT(A) and rejected the grounds of Revenue.
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