TaxTMI 
TaxTMI 
2012 (4) TMI 767
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....me Tax Rules at prescribed rates. ii. The learned CIT(A) erred in confirming the disallowance of claim of business loss of Rs. 27,71,456 being the amount of debt becoming irrecoverable and written off by the Appellant. 3. The facts are that assessee is a member of BSE and during the year has carried out share broking activities. The assessee has claimed a sum of Rs. 28,75,000/- towards depreciation on the membership right of Bombay Stock Exchange, calculated @25% on the value of 1,15,00,000/- 3. On finding that the assessee has claimed depreciation on the BSE membership card, the AO asked the assessee as to how the said claim was allowable. The assessee, in response to the query raised by the AO, replied that though the asses....
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....o Shares & Stock (P) Ltd., we find that the issue now is squarely covered by the decision of Hon'ble Supreme Court, therefore, respectfully following the decision, we allow the ground taken by the assessee and allow depreciation on the BSE Membership Card. 8. The second ground is disallowance of loss Rs. 27.71 lacs being the amount of debt becoming irrecoverable and written off by the appellant. 9. The facts relating to this ground is as under:- The assessee had claimed the amount written off was towards brokerage dispute, however, no evidence in this regard has been furnished. The amounts outstanding as appearing in the account of client would consist of amounts receivable towards purchase/sale of shares and also brokerage. ....
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..... A sum of Rs. 37.93 was recoverable from them in May 2003. The company was given repeated reminders about payments. However the company was unable to pay its dues due to non receipt of money from its clients. The outstanding in August 2003 were Rs. 26.93 Lakh. The company finally raised its hands since they were unable to recover the amount from their customers. They offered their two computers which hardly had any value. The Appellant had no option but to write it off since the amount had become irrecoverable. Legal action would not have been any significance. Soverign Nariman Broking Pvt. Ltd. Is also assessed with the same A.O. and has written back the amount and offered the amount as income. ii) The Office Recovery Rs....
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....invest P. Ltd., the Director of Sovereign Securities P. Ltd. in which Mr. Harshad J. Choksi having 1173600 shares, i.e. 51.0039 % of total share holding. In Sovereign Nariman Broking P. Ltd., Mr. Harshad J. Choksi has 450 shares and the major share holding in Sovereign Nariman Broking Pvt. Ltd. is that of Sovereign Global Finance Pvt. Ltd. having 50,000 shares, i.e. 50% of the total share holding. The assessee's submission that Sovereign Nariman Broking P. Ltd. is also assessed with the same A.O. and has written back the amount and offered the amount of income has to be looked into the point of total income and tax paid by Sovereign Nariman Broking P. Ltd. The total income of Sovereign Nariman Broking P. Ltd. as per Return of incom....
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..... 39,326/-, no details have been filed while the addition is found to be correct. Regarding Meena J. Shah, no details of evidence have been furnished as the appellant has failed to give the evidence as to how and why the amount was not recoverable. 12. Having heard the arguments of the two parties, we find that the assessee was doing business with its sister concern Sovereign Nariman Broking (P) Ltd. (SNBPL) wherein SNBPL was acting as the assessee company's sub worker. SNBPL was supposed to pay to the assessee company a sum of Rs. 37.93 lacs till May, 2003. SNBPL from June 2003 to August 2003 made certain payments to the assessee company and in August 2003, when the amount receivable from SNBPL was Rs. 26.93 lacs it finally con....