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TMI Blog2015 (8) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... s Broking. Assessee filed its return of income for A.Y. 08-09 on 30.09.2008 declaring total income of Rs. 55,80,830/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 25.11.2010 and the total income was determined at Rs. 94,95,720/-. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A) who vide order dated 01.06.2011 granted partial relief to the Assessee. Aggrieved by the aforesaid order of CIT(A), Assessee as well as Revenue both are now in appeal before us. The grounds raised by the Revenue reads as under:- 1. The Ld. CIT(A) erred in law and on facts in restricting the addition made on account of disallowance of bad debt to Rs. 22,50,000/- as against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. He was further of the view that to allow the claim as bad debts, the debt should have been considered as income. In the present case, since brokerage is only considered as income, the claim of the bad debts claimed by the Assessee is not allowable and accordingly denied the claim of deduction. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A) who after considering the submissions of the Assessee granted partial relief to the Assessee by holding as under:- 4.3 I have carefully considered the submissions of the Ld. Counsel as well as the facts of the case. The decisions relied upon by the Ld. Counsel has also been considered. The Ld. Counsel has submitted that the company has accounted for the brokerage income re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of share or stock brokers. Similar issue was came for consideration before my predecessor in appellant's own case for the A.Y. 2007-08. The claim of bad debt of Rs. 2,56,283/- was allowed by my predecessor vide appellate order dated 10.01.2011 in appeal No. CIT(A)-XVI/DCIT.Cir.3/388/09-10 by holding that the issue is squarely covered by the decision of Hon'ble I.T.A.T., special bench Mumbai in the case of Shreyas S. Morakhia supra. The disallowance made by the AO is therefore deleted. However, the facts are somewhat different for the year under consideration. The appellant had made the claim of bad debts of Rs. 37,75,920/-out of which Rs. 32,18,105/-represents the less money received in terms of arbitration award under the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant shall be entitled to recover the full claim of Rs. 54,60,000/- of both the matters. It is clear from the aforesaid Arbitration Awards that the appellant had made a claim of Rs. 54,68,105/- (Rs.:30,07,773/- + Rs. 24,60,332/-) in both the cases. The award was declared for Rs. 45,00,000/- (Rs. 22,50,000/- + Rs. 22,50,000/-). Thus what the appellant had lost is an amount of Rs. 9,68,105/- (Rs.54,68,105/- as claim made - Rs. 45,00,000/- as claim allowed). This loss of the appellant is allowable in view of the decision of the Hon'ble Special Bench of Mumbai Tribunal in the case of Shreyas S. Morakhia40 SOT 432 ( Mum.)(SB). Thus in entirety, the claim of bad debts of Rs. 15,25,910/-. (Rs. 5,57,815/- relating to other clients and Rs. 9,68, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record, it is seen that as per the consent terms, the award was that Assessee was to be paid Rs. 22,50,000/- in full satisfaction of Assessee's claim in arbitration no. MCX/Legal/127A/08 and in Reference No. MCX/Legal/126A/08 meaning thereby that Assessee was awarded total amount of Rs. 22,50,000/- as against its claim of Rs. 54,68,105/- and therefore the balance amount of Rs. 32,18,105/- (Rs. 54,68,105 - 22,50,000) in terms of the aforesaid arbitration award was not recoverable and was therefore written off. Before us, no material has been placed on record by Revenue to controvert the findings of ld. A.R nor has demonstrated that the Assessee has received extra than the award amount. In view of the aforesaid facts, we are of the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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