HIGH COURT OF
Jay Engineering Works Ltd.
v.
Commissioner of Income Tax, Central-III,
Madan B. Lokur and S. Muralidhar, JJ.
IT Reference No. 119 of 1987
September 13, 2007
Section 41(1) of the Income-tax Act, 1961 - Remission or correction of
trading liability - Assessment year 1980-81 - Whether in view of decision of
Supreme Court in CIT v. T.V. Sundaram Iyengar & Sons Ltd., [1996] 222 ITR 344/88 Taxman 429,
Tribunal was justified in law in holding that sum of Rs.1.16 lakhs, comprising of cheques
issued in regard to wages being unclaimed and sundry credit balance,
unilaterally written back by assessee to credit of its profit and loss account
during accounting period under consideration constituted income of assessee -
Company under section 41(1) - Held, yes