TMI Blog1981 (2) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... so the reasoning of the first appellate authority (CIT, Appeals) for the asst. yr. 1973-74 (I.T.A. No. 114/JP/1980) is based on the order of the same authority made for the asst. yr. 1971-72 (ITA No. 113/JP/1980) and as also we have been addressed in one set, by both the parties into these appeals, as of necessity and for the sake of convenience, we are disposing of, these appeals by this common c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the facts of the case as a background, as also the contentions raised on behalf of the assessee before the first appellate authority, and the findings of the first appellate authority are produced hereunder: "9. Unclaimed wages for 1967 Rs. 13,490. On reference to the note filed by the ld. Rep. It is found that the unclaimed wages relates to 1967 and that it was transferred to P L accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) Mere expiry of period of limitation would not constitute cessation of assessee's liability. (b) Crediting the P L account with the unclaimed wages does not automatically bring the cessation of liability or remission thereof. 11. The same point was agitated before the Tribunal in respect of 1972-73 assessment wherein the appellant's claim was accepted with the following specific observat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unequivocally his intention not to honour his liability when the payment is demanded by the creditor or by a contract between the parties or by discharge of the debt: the debtor making payment to the creditor. Mere transfer of any entry by the debtor does not bring about cessation or remission of the liability. 12. Since the facts of the case relevant to this assessment are absolutely identical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. yr. 1972-73 and which order is dt. 30th June, 1979 and whereby, on very identical facts it has been held that there was no cessation of liability and the amounts could not be added as income of the assessee while computing the total income of the assessee for the purposes of its being charged to income-tax under the provisions of IT Act. Since the first appellate authority has afforded relief t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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