Bad debt – Amount receivable by a share broker from his clients against purchase of shares when not recovered can be allowed as bad debt

DECIDED BY: ITAT MUMBAI BENCHES `B’, SPECIAL BENCH , IN THE CASE OF: DCIT Vs. Shreyas S. Morakhia, APPEAL NO: ITA No. 3374/Mum/2004, DECIDED ON July 16, 2010 ORDER PER P.M. JAGTAP, AM. This Special Bench has been constituted u/s 255(3) of the Income Tax Act, 1961 to decide the following question which is arising out of the present appeal:- “Whether on the facts and circumstances of the case and in law, the assessee, who is a share broker, is entitled to deduction by way of bad debts under section 36(1)(vii) read with section 36(2) of the Income Tax Act, 1961 in respect of the amou...