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2012 (2) TMI 124 - HC - Income TaxDis-allowance of bad debts – share broker - Revenue did not doubted share transaction and that amount has been written off in the books of account of the assessee - objection regarding whether the transaction resulting in bad debt were undertaken in the individual capacity of B. Ahuja(client) or on behalf of the company employing him - dis-allowance of interest paid on delayed payment to NSE, DSE – revenue contending it to be penalty – Tribunal deleted aforesaid dis-allowances - Held that:- Deduction is allowed u/s 36(1)(vii) in view of decision in case of T.R.F. Ltd. Vs. CIT (2010 - TMI - 76626 - Supreme Court ) holding that after 1st April, 1989, it is enough if the bad debt is written off in the books of accounts of the assessee and it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. Revenue has not been able to controvert findings of Tribunal and show that the payment was, in fact, in nature of penalty and not normal interest on delayed payment. Deletion of dis-allowance is upheld – Decided in favor of assessee.
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