ITAT Delhi Allows NSEL Scam Related Bad Debt Claim as Business Loss

Flair Exports Pvt. Ltd. Vs ACIT (ITAT Delhi) New Delhi: In a ruling favouring a taxpayer impacted by the National Spot Exchange Ltd (NSEL) scam, the Income Tax Appellate Tribunal (ITAT) Delhi bench has allowed a claim of Rs. 56,74,032/- written off as a bad debt. The tribunal set aside the orders of the tax authorities who had disallowed the claim, primarily on the grounds that the write-off was premature and that the underlying NSEL transactions were speculative in nature. The ITAT held the amount to be an allowable business loss incidental to the assessee’s commodity trading activities...