Where the assessee claimed loss on account of different items of frauds, embezzlement by the employees of the bank, the same was allowed, as the legal recourses was taken against the alleged defaulters including termination of service of the guilty employees. It was held that the losses caused to the assessee was allowed, as they were very much irrecoverable. The reliance was placed on Supreme Court judgement in the case of Bombay Steam Navigation Co. (1953)(P) Ltd. v. CIT (1964) 56 ITR 52 (SC)  where it was specifically held that the question must be viewed in the larger context of business necessities or commercial expediency and that no abstract or pedantic view can be taken in the matter. (AY. 2011-12)