Assessee had made payment towards purchase cost of commodities prior to 6th Aug, 2013. National Spot Exchange  (NSEL)  trading operations were suspended on 6th Aug, 2013 by Ministry of Corporate Affairs. The assessee received was only delivery allocation report according to which stock was in possession of NSEL warehouse though title of the goods was with the assessee. Sufficient goods were not physically available in the warehouse. DE CIT which came to light through audit conducted by independent auditors at the warehouse at the behest of the Government. Since the stock of goods was not found in the warehouse, assessee  lost its chance to ASEL recover the amounts paid from NSEL. It was the legal obligation of the NSEL to settle the contracts. NSEL failed to pay the outstanding amounts under the contracts of the assessee-company through its broker member. The AO disallowed the loss. CIT(A) allowed the claim of the assessee. On appeal by the Revenue the Tribunal held that since   the purchase cost of the commodities became irrecoverable,  CIT(A) was justified in allowing deduction of the  amount written off by the Assessee in its books. Followed  CIT v.  Wackhardt International Ltd. (2009) 314 ITR 11 (Bom)(HC).  (AY.2014-15)