Alok Aradhe, J.

This bunch of appeals preferred under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) was admitted on following substantial questions of law by an order dated 01.02.2016 passed in ITA No.17/2007 which are reproduced below for the facility of reference.

“(i) Whether the loss on account of embezzlement can be claimed when information of the embezzlement is acquired or when the embezzlement is discovered? Whether the terms detection and discovery has the same connotations?

(ii) Whether the loss by embezzlement being incidental to the banking business should be allowed as deduction in the year of its detection or in the year it is discovered?

2. Since the appeals were admitted on common substantial questions o f law, they were heard analogously and are being decided by this order. For the facility of reference, facts from ITA No.17/2007 are being referred to.

3. The assessee filed the return of income for the Assessment year 1997-1998 in which it claimed embezzlement loss of Rs.1,65,000/-. The Assessing Officer vide order dated 18.03.2003 inter alia held that although the embezzlement came to the notice of the assessee on earlier da