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Under the Income-tax Act, 2025, a loss caused by an employee's embezzlement of cash in the course of a…

Section 26(2)(a) taxes "profits and gains" of business, computed on commercial principles. Badridas Daga v. CIT (1958) treats an employee's business-related embezzlement as…

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Under the Income-tax Act, 2025, a loss caused by an employee's embezzlement of cash in the course of a money-lending business is

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Correct answer C

Section 26(2)(a) taxes "profits and gains" of business, computed on commercial principles. Badridas Daga v. CIT (1958) treats an employee's business-related embezzlement as an incidental business loss; it is not expenditure acquiring a capital asset.

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