Jackie Shroff comes to rescue by writing off wife's loans

4th January 2019

The Mumbai branch of India's Income Tax Appellate Tribunal (ITAT) has ruled a hearing in the favour of Ayesha Shroff as the bench has allocated 11.35 cr to Jackie Shroff as a business loss. The transaction is dated way back for the financial year 2008-2009 where the actor took the loss amount in the business book as ITAT challenged and disagreed to such mentions and stated that such an amount was drawn as the personal use and cannot be included as business loss.

Jackie Shroff became a saviour for wife Ayesha and Quest films with whom the actor had proprietorship and suffered losses from having stakes in films like 'Boom' and 'Sandhya' which were a huge flop at the box-office. This did lead to a production house shut down and Ayesha left with loans to pay.

Now, Jackie had declared it a business loss in his tax return. However, the IT Officer that had reviewed the loan as a personal expense has now written off the total amount as the loss incurred in the business. The ITAT, in its order dated December 31, 2018, held that as the loans were advanced to his wife or her proprietary concern cannot be the only criteria for holding it as personal in nature. As there was no possibility of recovery of these loans in the future, the write-off should be treated as a business loss. 

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