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2013 (10) TMI 834 - AT - Income TaxBad debts to be written off u/s 36(1)(vii) of the Income Tax Act – Conditions u/s 36(2) - assessee claimed bad debts for not receipt of brokerage charges but non receipt of margin money also - claim of bad debts towards debts arisen during the current year or earlier year – Held that:- Debt under reference satisfies the condition of section 36(2)(i) in-as-much as the broker only acts as a mediator/intermediary, and the property in the contract belongs to the corresponding principals - Revenue's stand that only the claim to the extent of Rs.27.87 lacs could be claimed thus, i.e., for the current year, on the ground that the debt written off pertains to the current year to that extent, is without merit. What is relevant is not the year to which the debt/s written off pertains, but the year in which the loss in its respect, which is signified by its write off in its accounts as irrecoverable, relates to – Decided in favor of Assessee.
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