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2013 (4) TMI 292 - AT - Income TaxDisallowance of bad debts - assessee is a member of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) dealing in shares & securities and earning brokerage income - The assessee has claimed that the brokerage earned on these transactions have been included in the computation of income therefore, the conditions as prescribed u/s 36(2) has been complied with - Held that:- The claim of the assessee, in principle is covered by the decision of in the case of Shreyas S Morkhia (2010 (7) TMI 455 - ITAT MUMBAI). Thus if the brokerage has been included in the income as credited to the P&L Account of the assessee, then the conditions as prescribed u/s 36(2)(i) has been fulfilled as the part of the amount has been taken into account in computing the income of the assessee. In view of these facts AO is directed to allow the claim of the assessee subject to verification of the facts that this amount of bad debt claimed by the assessee is after reducing the amount received from sale of shares, if any held by the assessee on behalf of the clients against whom this amount has been claimed as bad debt as well as whether the brokerage amount was considered in computation of income.
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