treatment of unrealised short term gain

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Jayant (Querist)

19 October 2010 In A.Y. 2009-10 we had short term capital gain say Rs. 100 crs. for transfer of goodwill and we had paid short term capital gain tax on entire capital of Rs. 100 crs.
Rs. 75 crs were recd. in A.Y. 2009-10 itself and balnce Rs. 25 crs was due.
Now in A.Y. 11-12 the balance amount is no more receivable.

can we calim this 25 crs as business loss ( since it amount to writing off of debts ) or capital loss ?

If it is capital loss how to compute it? and why it is capital loss?

Are there any relevent case laws on same subject?
Your expert comments are highly appreciated.

taxindiaconnect

taxindiaconnect (Expert)

19 October 2010 Interesting question, however the reply to this is straight that no expenditure is allowed against the short term capital loss / long term capital loss except for cost of improvement etc. The writing off the unrealised capital gain is not a improvement cost , thus not allowable. Never come across such a case law.

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