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2011 (5) TMI 127 - CALCUTTA HIGH COURTDeemed income on account of extinguished or remitted liability - Cheques were not presented by the creditors during the validity period - ITAT treated the amount due to creditors as extinguished liability and hence deemed income u/s 41(1) - In view of decision of Apex Court in Commissioner of Income-tax v. T. V. Sundaram Iyengar and Sons Ltd. (1996 -TMI - 5532 - SUPREME Court) held that: - In the absence of the creditor, it is not possible for the authority to come to a conclusion that the debt is barred and has become unenforceable. There may be circumstances which may enable the creditor to come with a proceeding for enforcement of the debt even after expiry of the normal period of limitation as provided in the Limitation Act. - the views taken by the Tribunal are totally opposite the ones taken by the Supreme Court mentioned above and consequently, are not tenable. The order of the Tribunal below is, thus, set aside and the Assessing Officer is directed to delete the aforesaid amount involved from the income of the assessee for the relevant year. - Decided in favor of assessee
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