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2011 (4) TMI 934 - AT - Income TaxBad debts - share broker - Held that:- When the assessee has earned the brokerage on the transactions of purchase and sale of shares on behalf of the clients, then if the amount becomes bad on account of not recoverable then it is allowable in view of the decision of the Special Bench of this tribunal in the case of DCIT V/s Shreyas S Morakhia. (2010 - TMI - 203106 - ITAT Mumbai). Decided in favor of the assessee. Dis-allowance of rent paid to group concern and addition of society charges and brokerage paid on the ground that the same pertains to the period when the premises were not occupied by the appellant – Held that:- As per leave and license agreement, the sharing of the premises with group concern is allowed and it is undisputed fact that the assessee has incurred an expenditure towards the service charges of the shared premises to its group concern. Even otherwise when the expenditure is claimed by one of the either parties, there is no double deduction then it has no revenue effect if the expenditure is allowed in the hands of the assessee instead of other group concern. When the CIT (A) has accepted the contentions of the assessee and allowed the expenditure from the date of the occupation of the premises, there are no reason for disallowance of the claim of the assessee for intervening period from taking the premises on leave and license till shifting of the assessee from the existing office to the new premises. Therby, rent and other service charges are allowed. Decided in favor of assessee.
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