IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 2.2.2015 CORAM HON'BLE MR. JUSTICE R.SUDHAKAR AND HON'BLE MRS. JUSTICE S.VIMALA T.C.(A).Nos.1308 and 1309 of 2007 Aparanjitha Finance Co Limited (merged with M/s. Sundaram Finance Ltd.) 21, Patullos Road Chennai 600002. Appellant Vs. Joint Commissioner of Income Tax Special Range-II Madurai. .. Respondent PRAYER: Appeals under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal 'A' Bench, Chennai, dated 2.6.2006 made in I.T.A.Nos.1495 and 1496/Mds/2003 for assessment years 1997-1998 and 1998-1999. For Appellant : Mr. Venkat Narayanan for M/s. Subbaraya Aiyar For Respondent : Mr. M.Swaminathan Standing Counsel JUDGMENT (Delivered by R.SUDHAKAR, J.) assessee has filed these appeals assailing order of Income Tax Appellate Tribunal 'A' Bench, Chennai, dated 2.6.2006 made in I.T.A. Nos.1495 and 1496/Mds/2003 for assessment years 1997-1998 and 1998-1999 and same were admitted on following questions of law: (2) (i) Whether Tribunal was right in law in holding that appellant is not entitled to deduction of provision made in respect of Non Performing Assets which are considered irrecoverable? (ii) Whether Tribunal was justified in not appreciating that provision made in respect of Non Performing Assets if not allowable as bad debt is allowable as business loss? 2. learned counsel on either side fairly concede that questions of law raised in these appeals are covered by decision of Division Bench of this Court in Sundaram Finance Limited v. Assistant Commissioner of Income Tax [T.C.(A) No.1195 of 2007, dated 13.3.2014]. In said decision, Division Bench followed decision of Supreme Court in Southern Technologies Ltd. v. Joint Commissioner of Income Tax, (2010) 320 ITR 577 (SC) and answered similar questions of law against assessee and in favour of Revenue. 3. In Sundaram Finance Ltd. v. Assistant Commissioner of Income Tax, (2012) 349 ITR 356 (SC), Supreme Court reiterated principles laid down in Southern Technologies Ltd. case, referred supra, and held that assessee is not entitled to deduction as bad debt or as business loss provision made in respect of non-performing assets which were considered irrecoverable. (3) 4. In light of law laid down in decisions, referred supra, these appeals are dismissed answering questions of law raised in these appeals against assessee and in favour of Revenue. No costs. (R.S.J.) (S.V.J.) 2.2.2015 Index : No Internet : Yes sasi To: 1. Assistant Registrar, Income Tax Appellate Tribunal Chennai Bench "A", Chennai. 2. Secretary, Central Board of Direct Taxes, New Delhi. 3. Commissioner of Income Tax (Appeals) - II Madurai. 4. Joint Commissioner of Income Tax Special Range II, Madurai 2. (4) R.SUDHAKAR,J. and S.VIMALA,J. (sasi) T.C.(A).Nos.1308 and 1309 of 2007 2.2.2015 Aparanjitha Finance Co. Limited (Merged With M/s. Sundaram Finance Ltd.) v. Joint Commissioner of Income-tax, Special Range-II, Madurai