Unclaimed liabilities written off not taxable for 1973-74 assessment year

The Delhi HC held that the unclaimed liabilities written off by the assessee were not taxable for the assessment year 1973-74, following precedent from J.K. Chemicals Ltd. v. CIT [1966] 62 ITR 34 (Bom.) and CIT v. Sugauli Sugar Works [1999] 236 ITR 5181 (SC).

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The Delhi High Court ruled in favor of the assessee, stating that the amount of Rs. 39,039 representing unclaimed liabilities written off was not taxable for the assessment year 1973-74. The decision was based on the case of J.K. Chemicals Ltd. v. CIT [1966] 62 ITR 34 (Bom.). The reference was decided in favor of the assessee following the decision in the case of CIT v. Sugauli Sugar Works [1999] 236 ITR 5181 (SC).

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