Dismissing the appeal of the revenue the Court held that ; amounts remaining unrecoverable as creditors untraceable cannot be the ground to conclude that there was cessation of liability .( AY.2007 -08)
CIT v. Vishal Transformers And Switchgears Pvt. Ltd. (2018) 405 ITR 266 (All) (HC)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Amounts remaining unrecoverable as creditors untraceable cannot be the ground to conclude that there was cessation of liability .