Employee Embezzlement Loss Allowable as Business Deduction in Year of Discovery: ITAT Mumbai

ACIT Vs National Peroxide Limited (ITAT Mumbai) In the order u/s143(3), AO disallowed the deduction on account of embezzlement of funds amounting to Rs.18.96 crores &  the expenditure related to exempt income u/s14A  read with Rule 8D. Additionally, the return of income filed by Assessee was processed u/s143(1)(a). While computing the income, additions were made on account of disallowance of exempt income claimed u/s115-P amounting to Rs.17,06,252/- & disallowance u/s43B amounting to Rs.1,73,77,069/-. Both issues relating to the additions u/s 115-O & 43B were contested by Assesse...