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TMI Blog1974 (11) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... s and dealers in mill stores, and in the course of that business it had dealings with a large number of parties. Various amounts became due to those parties in respect of the trading transactions of the assessee-company, and in cases where those amounts were not claimed within three years of their becoming due, the assessee-company transferred them to an account called the "unclaimed balances acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able and hence he added the sum of Rs. 65,881 to the total income of the assessee. On appeal to the Appellate Assistant Commissioner, it was held that the amount could not be taxed in the assessment year because the amount accrued as a benefit to the assessee only when the debts became unenforceable, and he, therefore, deleted the sum of Rs. 65,881. On further appeal to the Tribunal, it was held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a debt does not by itself constitute cessation of liability within section 10(2A). In the J. K.Chemical's case it has further been clarified that neither remission nor cessation of liability could take place by a unilateral act on the part of the debtor, and that even if the amount was distributed by the company to its shareholders, it could not get rid of its liability when it was called upon to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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