https://www.taxtmi.com/caselaws?id=36953 Section 41(4) of the Income-tax Act, 1961 applies only where the same assessee who earlier obtained the bad debt deduction later recovers the amount. The provision is a strict deeming fiction read with section 36(1)(vii), and it cannot be extended to tax a successor assessee who did not receive the original allowance. Accordingly, recovery by a successor in business does not trigger the charge under section 41(4), because liability arises only from recovery by the person who enjoyed the prior deduction. en-us Tue, 23 Oct 1979 00:00:00 +0530 Thu, 25 Mar 2010 15:47:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36953 Section 41(4) of the Income-tax Act, 1961 applies only where the same assessee who earlier obtained the bad debt deduction later recovers the amount. The provision is a strict deeming fiction read with section 36(1)(vii), and it cannot be extended to tax a successor assessee who did not receive the original allowance. Accordingly, recovery by a successor in business does not trigger the charge under section 41(4), because liability arises only from recovery by the person who enjoyed the prior deduction. Case-Laws Income Tax Tue, 23 Oct 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36953