1981 (2) TMI 118

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.... directed against the same assessee viz. M/s. Shree Sadhul Textile Mills Ltd., more so the reasoning of the first appellate authority (CIT, Appeals) for the asst. yr. 1973-74 (I.T.A. No. 114/JP/1980) is based on the order of the same authority made for the asst. yr. 1971-72 (ITA No. 113/JP/1980) and as also we have been addressed in one set, by both the parties into these appeals, as of necessity ....

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....1973-74, has based the reasoning as per asst. yr. 1971-72 (ITA No. 113/JP/1980), hence the facts of the case as a background, as also the contentions raised on behalf of the assessee before the first appellate authority, and the findings of the first appellate authority are produced hereunder: "9. Unclaimed wages for 1967 Rs. 13,490. On reference to the note filed by the ld. Rep. It is found....

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.... High Court, 96 ITR 327. 10. The consensus of all the decisions above is that: (a) Mere expiry of period of limitation would not constitute cessation of assessee's liability. (b) Crediting the P&L account with the unclaimed wages does not automatically bring the cessation of liability or remission thereof. 11. The same point was agitated before the Tribunal in respect of 1972-73 assess....

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....iability becoming unenforceable by the law by the creditor and the debtor declaring unequivocally his intention not to honour his liability when the payment is demanded by the creditor or by a contract between the parties or by discharge of the debt: the debtor making payment to the creditor. Mere transfer of any entry by the debtor does not bring about cessation or remission of the liability. ....