2013 (5) TMI 51

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sth Chay Vyapar Ltd. & others [2010 (11) TMI 88 - Delhi High Court] which was in accordance with the Instruction No.9949 of the Reserve Bank of India and therefore, addition was deleted. no question of law is involved. Loss due to embezzlement by an employee - whether treated as accidental to the business - Held that:- I.T.A.T. after relying upon the judgment of Dinesh Mills Ltd. Vs. C.I.T. (20 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cash and expenses in mercantile system. The Assessing officer then held that, since provisions are not allowable and the assessee has claimed separately by a provision for bad and doubtful debts as per Section 36(i) of the Income Tax Act, 1961 an amount of Rs.2,59,02,596/is added to the total income of the assessee. 3. However, the C.I.T. (A) as well as the I.T.A.T. observed that the accounts i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... on this point, no question of law is involved. 6. The another issue raised is arising out of the some embezzlement by which the assessee suffered some loss for which an F.I.R. was also lodged and the investigation was also done by the bank officers. The I.T.A.T. relied upon the C.B.D.T. Circular which provides that loss due to embezzlement by an employee, the same should be treated as accidenta .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X