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2014 (5) TMI 348 - ITAT AHMEDABADDeleting the disallowance on account of bad debts – Held that:- Following DCIT Versus Shreyas S. Morakhia [2010 (7) TMI 455 - ITAT MUMBAI] and Commissioner of Income-tax Versus Bonanza Portfolio Ltd. [2009 (8) TMI 636 - DELHI HIGH COURT] - the amount receivable by the assessee, who is a share broker, from his clients against the transactions of purchase of shares on their behalf constitutes debt which is a trading debt - The brokerage/commission income arising from such transactions very much forms part of the said debt and when the amount of such brokerage/commission has been taken into account in computation of income of the assessee of the relevant previous year or any earlier year, it satisfies the condition stipulated in section 36(2) (i) and the assessee is entitled to deduction u/s 36(l)(vii) by way of bad debts after having written of the said debts from his books of account as irrecoverable - Revenue could not bring any contrary binding decision in its support, nor could it controvert the finding of CIT(A) – Decided against Revenue.
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