Case Law Details
Case Name : CIT vs. Bonanza Portfolio (Delhi High Court)
Related Assessment Year :
Courts :
All High Courts Delhi High Court
In a recent ruling Delhi High Court (HC) [226 CTR 468] in the case of CIT vs. Bonanza Portfolio (Taxpayer). The HC held that the Taxpayer, who is a share broker, is eligible to claim deduction for bad debts, pursuant to Section 36(1)(vii)of the Indian Tax Law (ITL). The ITL provides that a debt, which is written off in the books of account, is allowable as a bad debt, if the same had been taken into account in computing the income of the financial year in which the debt is written off or in any earlier financial year.
Background and facts of the case
The Taxpayer, a share broker, purchased ...
This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Kindly Refer to
Privacy Policy &
Complete Terms of Use and Disclaimer.
Does it mean that a Share Broker who have earned 1 crore from brokerage on turnover of 100 crore & has written off bad debts of 1 crore will not be required to pay any tax as the profit it NIL?