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TMI Blog2012 (8) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... e circumstances of the case, the Tribunal was justified in confirming the dis-allowance of bad debt claimed by the assessee u/s 36 (i) (vii) of the Act and which was written off in the previous year, holding that the claim of loss of debt cannot be said to be final ignoring the amendment of sub clause (vii) to clause (i) of Section 36 of the Act w.e.f. 1.4.89? (ii) Whether upon the facts and circumstances of the case the Tribunal was justified in rejecting the amount of Rs.1,87,389/- claimed by the appellant (employer) as due from his employee holding that there was no relationship of debtor and creditor between the parties? (iii) Whether upon the facts and circumstances of the case the interest paid to LIC and Banks on loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claiming deduction. No evidence was led before the Assessing Officer by the assessee, as to the date on which the assessee detected the inflated expenses vouchers, ; and to show the circumstances under ; which the assessee detected the embezzlement. No affidavit was filed by the assessee before the Assessing Officer, indicating the circumstances ; under which the matter was referred to the chartered accountant for preparing a report of embezzlement/inflated expenses. No letter of termination was produced, nor any police complaint was filed. ; The factum of embezzlement was not proved by the assessee. ; In Dinesh Mill's case, the Gujarat High Court relying upon Associated Banking Corporation of India Ltd Vs. Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oity or destruction by fire and such other things. Such risk of loss is incidental to the carrying on of operations of the business of banking. In the circumstances, such loss should have been treated as business loss. In the present case, the appellant is not in the business of handling of cash. ; if there was any embezzlement by any employee, apart from lodging of FIR, steps could be taken to recover the amount. ; The questions No. 1 and 2 are thus decided against the assessee, and in favour of the revenue. ; On the third question, regarding interest paid to LIC and banks ; on the loan taken for the purpose of business ; as allowable deductions under Section 57 of the Act, the Tribunal found that CIT (Appeal) discussed eac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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