https://www.taxtmi.com/caselaws?id=77117 HC held that in a share broking business, amounts receivable from clients for purchase/sale of shares constitute a "debt" for purposes of section 36(1)(vii). The fact that only brokerage was credited to the profit and loss account does not convert the underlying share transaction into an investment by the assessee. Since the assessee treated the transaction as one of brokerage on behalf of clients and the brokerage component had been considered in computing income, the entire debit balance, including sale/purchase consideration, qualifies as bad debt once it becomes irrecoverable. The statutory conditions under section 36(2) were satisfied, and the assessee was entitled to the bad debt deduction. The Revenue's appeal was dismissed. en-us Thu, 27 Aug 2009 00:00:00 +0530 Wed, 19 Nov 2025 15:24:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=77117 HC held that in a share broking business, amounts receivable from clients for purchase/sale of shares constitute a "debt" for purposes of section 36(1)(vii). The fact that only brokerage was credited to the profit and loss account does not convert the underlying share transaction into an investment by the assessee. Since the assessee treated the transaction as one of brokerage on behalf of clients and the brokerage component had been considered in computing income, the entire debit balance, including sale/purchase consideration, qualifies as bad debt once it becomes irrecoverable. The statutory conditions under section 36(2) were satisfied, and the assessee was entitled to the bad debt deduction. The Revenue's appeal was dismissed. Case-Laws Income Tax Thu, 27 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=77117