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2016 (3) TMI 1068 - AT - Income TaxCapital gains v/s business income - nature of income - Held that:- Taking into consideration the total effect of the principles, as advised by the Board, it would be clear that the short term capital gains is not on account of business activity. It is but similar to the activity in long term capital gains. As noted earlier, AO has accepted the long term capital gains on similar transactions in investment account. More over assessee has substantial trading income which was dealt separately in books of accounts. Therefore, we do not find any infirmity in the order of the CIT(A) in treating the gains on shares as capital gains as against the profits from business by the AO. - Decided against revenue Disallowance of bad debts written off - Held that:- Once the bad debt is written off as irrecoverable in the books of assessee, the claim of bad debt cannot be disallowed. Moreover as held by the honourable Bombay High Court in the case of Shreyas S Morakhia [2012 (3) TMI 103 - BOMBAY HIGH COURT ] and in the case of Bonanza Portfolio Ltd [2009 (8) TMI 636 - DELHI HIGH COURT] , as assessee offered brokerage income which was taken into account in the books, the principle amount has to be considered as full amount of debt for claim of deduction. Even if a fraud was committed on that account the same is allowable as bad debt. We, therefore, uphold the order of the CIT(A) in allowing assessee’s claim of bad debts. - Decided against revenue
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