Cash loss due to embezzlement by employees allowable in year of discovery

ACIT Vs Davangere District Central Co-op Bank Limited (ITAT Bangalore) Introduction: Delve into the recent judgment by ITAT Bangalore in the case of ACIT vs Davangere District Central Co-op Bank Limited. The matter revolves around the deduction claimed for losses resulting from an employee’s embezzlement, challenging the CIT(A)’s erroneous presumption. The analysis unveils the intricacies of claiming such deductions and the impact of the CBDT’s circular on the proceedings. Detailed Analysis: The appeal before ITAT Bangalore stemmed from the CIT(A)’s misconception that t...