Commissioner of Wealth-tax vs V.R. Annapoorani Veerappan

R. Jayasimha Babu, J.—The decision which the Tribunal had relied on to hold in favour of the assessee had itself relied on an earlier decision

of the same Tribunal for the earlier assessment year. That decision was the subject-matter of a reference and was considered by this court in

Commissioner of Income Tax Vs. Annapurani Veerappan, .

In that case, this court held that debts which the assessee claimed to have become irrecoverable, were not to be treated as bad debts as has

been held by the Tribunal.

Though that case arose under the Income Tax Act, 1961, and the present one is under the Wealth-tax Act, 1957, the factual matrix is the same.

In the circumstances, the law declared by this court in the case referred to above, to which the assessee was a party, would apply to the

assessment year 1978-79 in respect of the wealth-tax assessment as well.

The question referred as to ""whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum

of Rs. 21,505 due from one Chockalingam Chettiar should be excluded from the wealth of the assessee ?"" therefore, is answered in favour of the

Revenue and against the assessee.