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2010 (9) TMI 538 - AT - Income TaxAddition - In respect of transactions done on behalf of the clients the assessee had to pay a sum of Rs. 3,24,147.12 on behalf of the clients - The aforesaid sum was claimed as bad debt in the P&L Account - It is to be seen as to whether the commission income accruing to the assessee as a result of the transactions done on behalf of the client which has resulted in the debt which is written off as bad, was offered to tax - 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(1)(vii) by way of bad debts after having written of the said debts from his books of account as irrecoverable - Decided in the favour of the assessee by way remand
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