Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 180 - AT - Income TaxDisallowance of the claim of "Bad debts" - AO stated to be existence of no valid transactions - Held that:- As assessee had purchased shares on behalf of the sub-broker and in fact paid the amount of Rs. 1,06,10,247/- and as against this amount has received only a sum of Rs.64 lacs. The brokerage which was received in the aforesaid transaction was shown as income by the assessee which was taxed as such as well by the Assessing Authority. Thus only because shares were not delivered for want of full payment it cannot be said that there was no transaction between the parties and the amount which could not recover to the extent of Rs. 41,37,881/- is to be treated as debt. As shares remained in the possession of the assessee he could sell the said shares for whatever consideration it could fetch and it would be adjusted against the balance amount of Rs. 41,37,881/- payable by the debtor, i.e. the sub broker - in favour of assessee for statistical purposes.
|