https://www.taxtmi.com/caselaws?id=211148 HC held that a share broker is entitled to a deduction for bad debts under s.36(1)(vii) read with s.36(2) in respect of amounts unpaid by clients for transactions. Since brokerage was credited to the profit & loss account, part of the debt was taken into account for computing income, satisfying s.36(2)(i). The liability for brokerage and the transaction value together form the same debt; timing differences are immaterial. The Special Bench view was upheld; the question of adjusting the value of unsold shares against amounts receivable remains for the regular Bench. Appeal allowed for the assessee; no costs. en-us Tue, 28 Feb 2012 00:00:00 +0530 Mon, 18 Aug 2025 14:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211148 HC held that a share broker is entitled to a deduction for bad debts under s.36(1)(vii) read with s.36(2) in respect of amounts unpaid by clients for transactions. Since brokerage was credited to the profit & loss account, part of the debt was taken into account for computing income, satisfying s.36(2)(i). The liability for brokerage and the transaction value together form the same debt; timing differences are immaterial. The Special Bench view was upheld; the question of adjusting the value of unsold shares against amounts receivable remains for the regular Bench. Appeal allowed for the assessee; no costs. Case-Laws Income Tax Tue, 28 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211148