TMI Blog2022 (10) TMI 907X X X X Extracts X X X X X X X X Extracts X X X X ..... 41 (1) cannot be read in isolation with Section 41 (4). The assessment contemplated under Section 41 (1) is the same as the assessment contemplated under Section 41 (4). Therefore, merely because there is no corresponding amendment in sub-clause (4), it would not mean that the provisions of Section 41 (1) will not apply. 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. We are of the view that the order of the Appellate Tribunal, confirming th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of the Hon'ble Supreme 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 company. 5. Appeals are opposed by the learned Senior Standing Counsel for the Revenue, stating that the orders passed by the Assessing Officer as also the Appellate Tribunal are well reasoned and, as such, they require no interference. It is submitted that the decision rendered by this Court in CIT v. P.K.Ka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the amalgamating company will become taxable in the hands of the amalgamated company as business receipt irrespective of the provisions of Section 41 (4) ? (3) Whether on the facts and in the circumstances 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 written off by the amalgamating company, which got amalgamated, can be taxed in the hands of the appellant or not ? 9. The decisions cited ..... X X X X Extracts X X X X X X X X Extracts X X X X
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