| COURT: | Bombay High Court |
| CORAM: | Akil Kureshi J, M. S. Karnik J |
| SECTION(S): | 41(1) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | bogus liability, cessation, remission |
| COUNSEL: | Ashok Kotangle, Ex-parte |
| DATE: | January 4, 2019 (Date of pronouncement) |
| DATE: | September 21, 2019 (Date of publication) |
| AY: | 2010-11 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 41(1) (old & unpaid liability for sundry creditors): It is well settled through series of judgments that merely because a debt has not been repaid for over three years, would not automatically imply cessation of liability. Exhaustion of period of limitation may prevent filing of recovery proceedings in a Court of law, nevertheless it cannot be stated by itself that the liability to repay the amount had ceased. Such liability cannot be termed as bogus | |
It is well settled through series of judgments that merely because a debt has not been repaid for over three years, would not automatically imply cessation of liability. Exhaustion of period of limitation may prevent filing of recovery proceedings in a Court of law, nevertheless it cannot be stated by itself that the liability to repay the amount had ceased. Going by this logic itself, the Assessing Officer, in our opinion, committed an error invoking Section 41(1) of the Act
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