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2016 (6) TMI 338 - HC - Income TaxShort deduction of tax at sources - disallowance of bad debts - ITAT deleted the addition as done by CIT(A) - Held that:- As pointed out the assessee had purchased the aforesaid shares on behalf of the sub-broker and, in fact, paid the amount of ₹ 1,06,10,247/-. As against this amount, he received only a sum of ₹ 64 lakhs. The brokerage which was received in the aforesaid transaction was shown as income by the assessee in the previous year, which was taxed as such as well by the assessing authority. Under the circumstances, only because shares were not delivered for want of full payment, which was to be made by the subbroker to the assessee, it cannot be said that there was no transaction between the assessee and the sub-broker and the assessee had to make payment on behalf of the sub-broker, which he could not recover to the extent of ₹ 41,37,881, that sum has to be treated as “debt”. We notice from the decision of the CIT (Appeals) that the judgment of the Delhi High Court in Commissioner of Income-Tax vs. D.B.(India) Securities [2009 (7) TMI 894 - DELHI HIGH COURT] wherein held that as the assessee had not sold the shares to anybody else in the market and in the absence of such a sale, the assessee could not claim the aforesaid amount as “bad debt”. - Decided against revenue
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