Tax on Liability of amalgamating company written off by amalgamated company

DCIT Vs. Babcock Borsig Ltd. & Vice-Versa (ITAT Kolkata) Liabilities brought forward from amalgamating company written off by the amalgamated company (assessee) become its Business income- i.e. Profit chargeable to tax under section 41(1) of Income Tax Act, 1961 as the assessee had written off the liabilities after coming to a conscious conclusion that those liabilities were no longer required to be paid. Accordingly, it automatically became the income under section 41(1) of the assessee even though the amalgamating company claimed the deduction in the earlier years and not the assessee. S...