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2015 (5) TMI 608 - AT - Income TaxAdditions on account of Gross Receipts - A.O. making addition by alleging that the same has been accrued to the Appellant from M/s. Standard Chartered STCI Capital Markets Ltd. - Held that:- We agree with the revenue authorities that since the amount became due and/or accrued to the assessee, the income has emerged and therefore had to be taken as income of the assessee. The case cited by the AR has different facts, and till then it would remain contingent. But in the case in hand, the work was completed and it was the assessee who failed to have a proper collection from her clients to be paid to SC-STCI, on this default by the assessee, the amount though due was not paid to her, therefore, it was her income and the revenue authorities have correctly brought the same tax. As a result, we sustain the orders of the revenue authorities. - Decided against assesse. Irrecoverable amount of R21,20,714/- retained by M/s. Standard Chartered-STCI Capital Markets - whether the same may be allowed as bad debt? - Held that:- The assessee actually suffered loss, not only from the clients, who did not honour their commitments, but from her principal, i.e. SC-STCI, as well who did not pay her in line of their receipts from business and as per clause 6.15. We, therefore, hold that it was a business loss for the year under consideration. We, therefore, direct the revenue authorities to allow ₹ 21,20,714/- as business loss and consequential benefits attached to it. - Decided in favour of assesse. Payment of commission by the assessee to its constituents - non-deduction of TAS - Held that:- Since the revenue authorities have disallowed the payments of ₹ 4,08,872/- and ₹ 13,08,872/-, for non-deduction of TAS, the issue has created a major block to come to a logical conclusion.In these circumstances, we are of the opinion that these issues need to be adjudicated afresh in line with legal provisions of section 40(a)(ia). Thus direct the AO to examine the deduction of TAS and if the contentions of the assessee are correct, allow the expense. - Decided in favour of assesse for statistical purposes. Unexplained cash credit u/s 68 & Unexplained expenditure u/s 69C - Held that:- We have not been able to find out as to how the two figures were derived by the AO. In such a circumstance, most appropriate view would be that the orders of the revenue authorities be set aside with the directions to the AO to re-adjudicate the issues, if required. - Decided in favour of assesse for statistical purposes.
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