Loss due to fraud sale of shares

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Anil Modi (Querist)
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15 February 2020 Dear Sir
My client is builder having business of construction work.In addition to this business also doing share trading business through Brokers. in the financial year 2019-20 my client suffer loss of 2.36 cr due to fraud of employee & Brokers.They sold shares and transfer sale proceed in to a bank account fraudly opened in joint name of client and other person in one of the cooperative bank.In this year the client having Short term capital gain income and interest income on income tax refund.
my question is whether my client can set off the loss suffered 2.36 cr against interest income , business income and short term capital gain income.This loss is incidental in nature due to fraud. it is not a trading loss.
please give the expert opinion .

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 March 2020 It can be set off. Please read a similar case on the given link-
https://taxguru.in/income-tax/embezzlement-loss-due-to-fund-siphoning-by-employees-is-business-loss.html