{"id":9832,"date":"2015-03-16T09:56:04","date_gmt":"2015-03-16T04:26:04","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=9832"},"modified":"2015-03-16T09:56:04","modified_gmt":"2015-03-16T04:26:04","slug":"acit-vs-boots-piramal-health-care-ltd-itat-mumbai-s-29371-loss-due-to-fraud-financial-irregularities-have-to-be-allowed-in-the-year-of-detection","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/acit-vs-boots-piramal-health-care-ltd-itat-mumbai-s-29371-loss-due-to-fraud-financial-irregularities-have-to-be-allowed-in-the-year-of-detection\/","title":{"rendered":"ACIT vs. Boots Piramal Health Care Ltd (ITAT Mumbai)"},"content":{"rendered":"<p>Loss due to fraud and financial irregularities have to be allowed as a deduction in the year of detection. This is in line with the Board circular No.35D(XLVII- 20)(F.No.10\/48\/65-IT(A-I) dated 24.11.1965. The Hon\u2019ble Supreme Court in the case of <strong>Associated Banking Corporation Of India Limited. vs CIT<\/strong> reported in 56 ITR 1(SC) has held that \u201c<em>the loss by embezzlement must be deemed to have occurred when the assessee came to know about the embezzlement and realized that the amount embezzled could not be recovered<\/em>\u201d . In another decision, the Hon\u2019ble Supreme Court in the case of <strong>Badridas Daga V\/s CIT<\/strong> reported in 34 ITR 10) (SC) has held that \u201cthe losses which have been suffered by the assessee as a result of misappropriation by an employee have (1) which was incidental to the carrying on the business and should therefore be deducted in computing the profit of the business.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Loss due to fraud and financial irregularities have to be allowed as a deduction in the year of detection. This is in line with the Board circular No.35D(XLVII- 20)(F.No.10\/48\/65-IT(A-I) dated 24.11.1965 and the judgement of the Hon\u2019ble Supreme Court in the case of <strong>Associated Banking Corporation Of India Limited. vs CIT<\/strong> reported in 56 ITR 1(SC)<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/acit-vs-boots-piramal-health-care-ltd-itat-mumbai-s-29371-loss-due-to-fraud-financial-irregularities-have-to-be-allowed-in-the-year-of-detection\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,8],"tags":[],"class_list":["post-9832","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-tribunal","judges-amit-shukla-jm","judges-n-k-billaiya-am","section-531","section-287","counsel-j-d-mistri","court-itat-mumbai","catchwords-business-loss","catchwords-fraud","genre-domestic-tax"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/9832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=9832"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/9832\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=9832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=9832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=9832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}