sanjay shah (properitor) (71 Points)
10 December 2013Most of yu must hv heard abt NSEL(National Spot exchange fraud) wherein 15000 investors hv been cheated and scam of magnitude 5600cr has comeinto light this July.
Would like to know are their any provisions in IncomeTax Act wherein the amt which may not be recoverable from NSEL can be claimed as deductions..Some one advised Section 36 of the Income Tax Act, 1956 allows this.However not sure how and howmuch can be deducted.If someone can guide would be thankful.
Mihir
(Wealth Manager)
(5293 Points)
Replied 10 December 2013
It depends on how the company will treat these loses in their books of accounts.
"Share broker is entitled to deduction u/s 36(1)(vii) in respect of non-payment of purchase price of shares by client" -- CIT Vs Shreyas Morakhia (2012)
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