2023 (4) TMI 738

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....ghal, CA For the Revenue : Shri Kanv Bali, Sr. DR ORDER PER SHAMIM YAHYA , ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of ld. CIT (Appeals)-27, New Delhi pertaining to AY 2016-17. 2. The grounds of appeal taken by the assessee read as under :- "1. That on facts and in the circumstances of the case and in law, the CIT(Appeal) has erred in co....

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....ri Ramesh Kumar Gupta has done trading in various segments of stocks on BSE and NSE including futures. Due to certain transactions in futures, the account of the client created debit balance of Rs.40,36,304/-. After making certain efforts, the assessee recovered certain amounts and finally the amount of Rs.24,01,075/- could not be recovered by the assessee inspite of recovery proceedings initiated....

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....decision of Hon'ble Delhi High Court in the case of CIT vs. Bonanza Portfolio Ltd. - 2009 (8) TMI 636 - Delhi High Court. 7. Per contra, ld. DR for the Revenue relied upon the orders of the authorities below. 8. Upon careful consideration, we note that assessee has credited brokerage into income and the total bad debt in this year includes brokerage and part of the amount of transaction owe ....

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....e this bad debt occurred in the year in question, it was shown by the assessee in that manner. Since the brokerage payable by the client is a part of the debt and that debt had been taken into account in the computation of the income, the conditions stipulated in sub-section (2) of section 36 read with section 36(1 )(vii) stand satisfied in this case. Hence, question of law stands decided against ....