Loss of money by hacking - whether deductible?
This query is : Resolved
14 February 2014
I have come across a case where certain miscreants through the use of hacking tools, hacked into a bank account of a company and embezzled a large sum of money. Even though the perpetrators of the crime have been arrested, the police has not yet been able to nab the miscreants.
Whether in this particular case, writing off the amount will be allowable as a deduction under the Income Tax Act, 1961? Whether any formalities have to complied with?
Kindly mail me the answers on kunal.suraiya@rajda.in
Whether in this particular case, writing off the amount will be allowable as a deduction under the Income Tax Act, 1961? Whether any formalities have to complied with?
Kindly mail me the answers on kunal.suraiya@rajda.in
14 February 2014
The loss is not directly connected to the business operation of the company and not incidental to carrying on of the business of the company. Hence can't be allowed as business expenditure u/s 37(1) of the Income tax Act,1961.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- Relief u/s Section 89
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Plot of land. Cost of Acquisition
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
