Dismissing the appeal of the revenue the Court held that the embezzlement by one of the directors or an employee of the business of the assessee during the ordinary course of business would be a business loss irrespective of the criminal prosecution of the director or employee. The final outcome of the criminal proceedings or recovery of the amount in question would not determine the claim of the assessee in the assessment year 2012-13 when it was written off as a business loss. The Tribunal had rightly held it to be a business loss as it was treated to be only a pilferage of the assessee-company’s funds by a director on the board of the company. (AY. 2012-13)