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TMI Blog2013 (4) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed u/s 36(2)(i) has been fulfilled as the part of the amount has been taken into account in computing the income of the assessee. In view of these facts AO is directed to allow the claim of the assessee subject to verification of the facts that this amount of bad debt claimed by the assessee is after reducing the amount received from sale of shares, if any held by the assessee on behalf of the clients against whom this amount has been claimed as bad debt as well as whether the brokerage amount was considered in computation of income. - ITA No. 8859/M/2010 - - - Dated:- 15-2-2013 - RAJENDRA SINGH And VIJAY PAL RAO,JJ . Sh Prakash Jhunjhunwala, O P Meena ORDER This appeal by the assessee is directed against the order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the decision of the Special Bench of the Tribunal in the case of Shreyas S Morakhia reported in 40 SOT 432; however, the assessee's claim has been disallowed by the Commissioner of Income Tax(Appeals) on the ground that the assessee has not contended that the said amount of Rs. 11,55,496/- has been determined after reducing the amount received from sale of shares of the clients from the amount receivable from them. 4 Before us, the ld AR of the assessee has submitted that this amount of Rs.11,55,496/- claimed as bad debts pertains to 4 debtors namely Shri Sanjeev Dattar; Mrs Navita Lokesh Rustgi; Shri Ashok Patil and Shri Kiran Jain. He has further submitted that the written off debts pertains to the bills raised in the normal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income Tax(Appeals) has pointed out that the assessee has not established that the amount claimed by the assessee as bad debt is net amount after reducing the amount receivable form the sale of shares and further it has also not been examined by the Assessing Officer whether the brokerage in respect of these transactions have been included in the computation of income. 5 We have considered the rival submissions as well as the relevant material on record. The assessee has claimed that the brokerage earned on these transactions have been included in the computation of income; therefore, the conditions as prescribed u/s 36(2) has been complied with. The claim of the assessee, in principle is covered by the decision of the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the shares which remain in the hands of the assessee which has to be adjusted against the amount receivable from the client to be determined before the regular Bench of the Tribunal following the view of the Special Bench. The view which has been taken by the Special Bench is, with respect, in accordance with law. We accordingly dispose of the appeal by answering the question of law as formulated in the affirmative and in favour of the assessee. There shall be no order as to costs." 5.1 Thus, if the brokerage has been included in the income as credited to the P L Account of the assessee, then the conditions as prescribed u/s 36(2)(i) has been fulfilled as the part of the amount has been taken into account in computing the income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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