Business Loss of ₹7.66 Cr from NSEL Suspension was allowable as bad debt u/s 36(1)(vii)

Pico Capital Private Limited Vs DCIT (ITAT Mumbai) Conclusion: Loss of ₹7.66 Crore was allowable as bad debt deduction under Section 36(1)(vii), recognising the loss as a genuine business loss arising from NSEL’s operational suspension. Held: Assessee was engaged in the business of export of garments and investments, filed its return declaring a loss of ₹7.37 crore for AY 2014–15. During the year, it wrote off ₹7.66 crore as bad debts arising from trading in commodities through Anand Rathi Commodities Ltd. on the National Spot Exchange Ltd. (NSEL) platform. Following suspension of N...