https://www.taxtmi.com/caselaws?id=28773 Existing contractual liabilities continued by statutory deeming fiction after cancellation of registration, and the maintenance and discharge of those obligations still constituted carrying on business under the Income-tax Act. The company had issued fidelity guarantee bonds and, although no new contracts were entered into after cancellation, the pre-existing rights and liabilities under earlier bonds survived under the Insurance Act. Reinsurance did not displace the company or transfer the primary liability. On that basis, the limited activity connected with the outstanding bonds remained business activity during the relevant accounting periods, and the issue was answered in favour of the assessee. en-us Thu, 18 Feb 1982 00:00:00 +0530 Thu, 25 Feb 2010 15:40:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28773 Existing contractual liabilities continued by statutory deeming fiction after cancellation of registration, and the maintenance and discharge of those obligations still constituted carrying on business under the Income-tax Act. The company had issued fidelity guarantee bonds and, although no new contracts were entered into after cancellation, the pre-existing rights and liabilities under earlier bonds survived under the Insurance Act. Reinsurance did not displace the company or transfer the primary liability. On that basis, the limited activity connected with the outstanding bonds remained business activity during the relevant accounting periods, and the issue was answered in favour of the assessee. Case-Laws Income Tax Thu, 18 Feb 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28773