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2014 (1) TMI 1262 - AT - Income TaxDeletion of tax liability u/s 115JB of the Act – Rebate u/s 88E of the Act – Held that:- The decision in CIT Vs Horizon Capital Ltd. [2011 (10) TMI 489 - KARNATAKA HIGH COURT] - The CIT(A) accepted that the facts of the case are covered by the decision of Mumbai Special Bench and allowed the claim of bad debts to the tune and on the grievance of the assessee relating to the calculation of tax on book profit, the Ld. CIT(A) accepted the assessee’s submission that the issue at hand is covered by the decision of Bangalore Bench of ITAT in the case of Horizon Capital Ltd. Vs ITO and directed the AO to allow rebate u/s. 88E for STT paid by the assessee from the income tax on the income computed u/s. 115JB of the Act - This is the mode in which tax already paid is handed back at the time of final computation – Decided against Revenue. Deletion of bad debts made – Held that:- The decision in The Commissioner of Income Tax Versus Shri Shreyas S. Morakhia 2012 (3) TMI 103 - BOMBAY HIGH COURT ]followed - the requirements of section 36(2)(i) are fulfilled where a part thereof is taken into account in computing the income of the assessee – thus, the assessee was entitled to deduction by way of bad debts under section 36(1)(vii) read with section 36(2) in respect of the amount which could not be recovered from its clients in respect of transactions effected by him on behalf of his clients – Decided against Revenue.
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