https://www.taxtmi.com/caselaws?id=311858 ITAT Mumbai ruled in favor of the assessee regarding bad debts and speculative loss claims. The matter was remanded to AO for examining two aspects: (a) whether commodity sales occurred before 31.7.2013 and (b) whether the assessee disclosed the amount as revenue. If proven, bad debts would be allowable per TRF Ltd SC precedent. The tribunal rejected AO's classification of transactions as speculative, noting NSEL allowed delivery-based trading and AO previously accepted similar transactions as business income. The claim represented unrecovered debts from NSEL, not trading profits/losses subject to speculation rules. en-us Fri, 05 Aug 2022 00:00:00 +0530 Wed, 17 Jan 2024 21:07:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=311858 ITAT Mumbai ruled in favor of the assessee regarding bad debts and speculative loss claims. The matter was remanded to AO for examining two aspects: (a) whether commodity sales occurred before 31.7.2013 and (b) whether the assessee disclosed the amount as revenue. If proven, bad debts would be allowable per TRF Ltd SC precedent. The tribunal rejected AO's classification of transactions as speculative, noting NSEL allowed delivery-based trading and AO previously accepted similar transactions as business income. The claim represented unrecovered debts from NSEL, not trading profits/losses subject to speculation rules. Case-Laws Income Tax Fri, 05 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=311858