1990 (8) TMI 60

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..... under section 256(2) of the Income-tax Act, 1961, by the Department. Proceedings pertain to the assessment years 1976-77 and 1977-78. An application was made before the Tribunal raising a number of questions as questions of law. The application was rejected by the Tribunal. Hence, this application under section 256(2). Rule was granted in respect of the first question raised in respect of both the .....

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..... imed balances did not mean that the liabilities had ceased to exist and, therefore, section 41 (1) of the Income-tax Act, 1961, was not applicable. For the present, it may be assumed that the unclaimed balances represented trading liability and the assessee had taken benefit of deductions in respect of them. The question still remains whether there is remission or cessation of these liabilities d .....

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