Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2009 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (7) TMI 894 - HC - Income TaxAssessee carrying on the business of shares and stock broking, had purchased shares on behalf of and on instructions from its sub-broker - the assessee did not deliver those shares to the sub-broker. However, in the said year, brokerage was shown as income in the previous year relevant to AY 2001-02 in income-tax return, which was assessed as well. - for the assessment year 2001-02 assessee claimed deduction of the amount as “bad debt” under section 36(1)(vii), which it could not recover from the sub-broker - only because shares were not delivered for want of full payment, which was to be made by the sub-broker to the assessee, it cannot be said that there was no transaction between the parties - Shares remained in the possession of the assessee. Therefore, the assessee could sell the said shares in the market for whatever consideration it could fetch and that was to be adjusted against the balance amount of Rs.41,37,881 payable by the debtor, i.e., the sub-broker, to the assessee, before arriving at the actual figure of “bad debt”. This aspect has not even been looked into by the Income-tax Appellate Tribunal in its impugned order. – matter remitted for fresh consideration
|