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TMI Blog2022 (10) TMI 907X X X X Extracts X X X X X X X X Extracts X X X X ..... Padmanabhan & Ramamani For the Respondent : Mr.T.Ravikumar, Senior Standing Counsel COMMON JUDGMENT The appellant-assessee has challenged the impugned order of the Income Tax Appellate Tribunal, dated 04.09.2019, passed in ITA No.72/Chny/2015 and ITA No.73/Chny/2015, for the Assessment Years 2004-05 and 2005-06 respectively. 2. By the impugned common order, the Income Tax Appellate Tribunal d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court in Saraswathi Industrial Syndicate Ltd., referred to supra, though an attempt was made to amend the provisions of Section 41 of the Act with effect from 01.04.1993, there was no corresponding amendment to sub-clause (4) to Section 41 and, therefore, the bad debts recovered by the appellant cannot be taxed, as they are bad debts of the companies, which got amalgamated with the appellant com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding Counsel also submitted that the issue is now squarely covered against appellant/assessee by the decision of the Hon'ble Apex Court in Commissioner of Income Tax v. T.Veerabhadra Rao, (1985) 155 ITR 152 (SC). 6. We have considered the arguments advanced by the learned counsel for the appellant and the learned Senior Standing Counsel for the respondent. 7. For the Assessment Years 2001-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case, the Tribunal has erred in ignoring the ratio of the decision of the jurisdictional High Court in the case of P.K.Kaimal reported in 123 ITR 735 (Mad) and the decision of the Hon'ble Apex Court in the case of CIT v. Saraswathi Industrial Syndicate Ltd., reported in 186 ITR 278 ? 8. The point for consideration is, whether the bad debt recovered by the appellant, which was writte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of Section 41 (1) will not apply. 10. The recovery of the debt is a right transferred along with the numerous other rights comprising the subject of the transfer. If the law permits the transferor to treat the whole or part of the debt as irrecoverable and to claim a deduction on that account, it is difficult to accept that the same right should not be recognised in the transferee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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