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Income Tax - Highlights / Catch Notes

Home Highlights May 2015 Year 2015 This

Addition made on account of the cash embezzlements - Protective ...

Income Tax

May 23, 2015

Addition made on account of the cash embezzlements - Protective assessment - there is nothing more than an allegation of embezzlement by the assessee and such allegations, by itself, cannot be legally sustainable foundation for the addition being made in the hands of the assessee - AT

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  1. Protective assessment - no addition can be made in the hands of the assessee - the protective addition made in the hands of the assessee for these three assessment...

  2. The loss caused by embezzlement by the employee was incidental to the employment and entrustment of duty and should be allowed in computing the business income of the...

  3. Provision towards fraud – the incident which resulted in irregularities/embezzlement occurred during the previous year – thus, the loss has to be held to have...

  4. Disallowance of expenditure - loss by embezzlement by employees should be treated as incidental to business and the same should be allowed as deduction in the year in...

  5. Loss due to embezzlement by an employee - loss on account of theft be treated as business loss - no interference reuired - - HC

  6. Claim of deduction against Embezzlement of funds by the employees of the assessee-society - Undisputedly, no doubt has been cast on the embezzlement of funds -...

  7. The concept of protective assessment also becomes important in a situation where the addition on substantive basis is deleted and in such an event, protective assessment...

  8. Embezzlement loss must be deemed to have arisen only when employer comes to know about it and realizes that the amount embezzled cannot be recovered and not merely from...

  9. Protective assessment/addition - No substantive assessment/addition in the hands of other assessee - It is therefore a case where no substantive additions have been made...

  10. Addition on protective basis on account of coal business carried out by the assessee through the syndicate of Bhutoria Group - addition made on protective basis cannot survive - HC

 

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