Dismissing the appeal of the Revenue the Court held that debts barred by limitation do not cease to be debts. Not to be treated as income. referred, CIT v. Indian Rayon and Industries Ltd (2011) 336 ITR 479 (Bom.)(HC) (AY. 2011-12)
PCIT v. Batliboi Environmental Engineering Ltd. (2022) 446 ITR 238 (Bom.)(HC)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Debts barred by limitation do not cease to be debts-Not to be treated as income. [S. 28(i), Limitation Act, 1963]