TMI Blog2010 (9) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... mount embezzled by the employees, the claim was rightly disallowed in that year - Associated Banking Corporation of India Ltd. Vs. CIT [1964 -TMI - 49328 - SUPREME Court] - 495 OF 1992 - - - Dated:- 1-9-2010 - CORAM : HON'BLE MR. JUSTICE A.K. SIKRI HON'BLE MS. JUSTICE REVA KHETRAPAL Mr. P.N. Monga, Advocate Ms. Prem Lata Bansal, Advocate A.K. SIKRI, J. (ORAL) 1. The follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee before the CIT (A), this view of the Assessing Officer was found absurd. The Commissioner (Appeal) held that loss of money due to embezzlement by the employee while handling the funds of the business in discharging his duties was allowable deduction. However, at the same time, CIT (A) was of the opinion that this loss could not be allowed in the assessment year 1982-83, inasmuch as, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k place but it can be claimed only in the year when it is found that the said amount has become unrecoverable inspite of taking all possible measures to recover the same. Following observations of the Supreme Court taking this view in the aforesaid judgment may be quoted:- "It is wrong to say that irrespective of other considerations, as soon as an embezzlement of the employer's funds takes plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to restore wholly or partially his illgotten gains. Therefore, so long as a reasonable chance of obtaining restitution exists, loss may not ina commercial sense be said to have resulted." 3. Applying the aforesaid proposition of law to the facts of the present case, the Tribunal arrived at a finding that there was nothing to show that the steps taken by the assessee for the recovery of the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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