1962 (11) TMI 88 - HC - Income Tax

Summary

The Kerala High Court ruled in a case under the Indian Income-tax Act, 1922, that the loss incurred due to an employee's embezzlement was incidental to the bank's business. The employee, as an agent of the bank, took Rs. 18,000 from the safe on a holiday. The court held that the loss was within the risks of relying on employees and was part of conducting the bank's business. The judgment favored the assessee, following the principles in Badridas Daga v. Commissioner of Income-tax [1958] 34 I.T.R. 10.