TMI Blog2004 (5) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... g the unclaimed balances written off by the assessee was not taxable?" - On examination of the facts, the Tribunal has recorded that the amount was not paid by the assessee as penalty for late payment of sales tax but it was by way of interest - Both questions are answered in favour of the assessee and against the Revenue. - - - - - Dated:- 20-5-2004 - Judge(s) : B. C. PATEL., BADAR DURREZ AHME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d if that be so, the answer is required to be given in favour of the assessee and against the Revenue. So far as the second question is concerned, the Tribunal, relying upon the decision reported in J.K. Chemicals Ltd. v. CIT [1966] 62 ITR 34 (Bom) decided the issue in favour of the assessee. The said decision of the Bombay High Court was examined by the Supreme Court in the case of CIT v. Sugauli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability becoming unenforceable at law by the creditor and the debtor declaring unequivocally his intention not to honour his liability when payment is demanded by the creditor, or a contract between the parties, or by discharge of the debt-the debtor making payment thereof to his creditor. Transfer of an entry is neither an agreement between the parties nor payment of the liability.' This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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