The Tribunal held that the assessee came to know of embezzlement in 2001-02 but he tried his level best to recover the embezzled amount by filing police complaints and even having the matter referred to the CBI by filing first investigation reports against the accused persons. The assessee also pursued the matter with the banking ombudsman and the bank officials, when finally everybody refused and there was no chance of recovery, the assessee reversed this amount in the accounts of the assessee for assessment year 2008-09, when it finally discovered that this amount was not recoverable. Hence, in such circumstances, the loss on account of embezzlement claimed by the assessee was allowable in this year. (AY. 2008-09)