COMMISSIONER OF INCOME TAX Vs. MOHAN TRADING CO

JUDGEMENT

(1.) THE petitioner, in respect of the asst. year 1972 -73, seeks reference of the following question of law to this Court :

(2.) ACCORDING to the respondent, a sum of Rs. 38,168 was embezzled by one of its employees from its branch at Jammu. This embezzlement was found out by the auditors. The respondent came to know about this embezzlement on July 14, 1971.

(3.) THE respondent claimed deduction of this amount. The ITO did not allow the same. In appeal, the CIT (A) held that, in view of the fact that a reminder had been sent to the Inspector -General of Police as late as 1976, it still showed that the respondent herein considered the chances of recovery as good and hence it could not be said that the loss had occurred during this year.