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Income Tax - Highlights / Catch Notes

Home Highlights September 2017 Year 2017 This

Embezzlement loss must be deemed to have arisen only when ...

Income Tax

September 6, 2017

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 the date of acquiring knowledge in which that embezzlement has taken place.

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  1. Disallowance on account of bad debt/trading loss - the assessee is eligible for the deduction of the amount embezzled by the employee as a trading loss.

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

  3. The embezzled cash by an employee of the assessee in the course of business activity has to be allowed as business loss. - AT

  4. 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...

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

  6. 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...

  7. Imposition of penalty – fabrication/alteration of TR-6/GAR-7 challans and bogus challans - fraudulent act on the part of the Consultant - Amount embezzled by Consultant...

  8. Addition on account of bad debt - embezzled by one of the employees of the company - Non–filing of FIR before the Police - embezzlement may not be allowable as bad debt...

  9. Computation of MAT u/s 15JB - Book Profit - Once it is realized that the assessee had correctly debited the profit and loss account for the loss arising out of the...

  10. 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 -...

 

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