A claim of creditor cannot be said to be barred by limitation if acknowledged by the debtor

CIT Vs. M/S Banaras House Ltd. (Delhi High Court) Income Tax Appellate Tribunal on the said issue held that the assessee had carried forward the balances from earlier years. Some credit balances were written off in the year in question and some in succeeding years. Further, when a liability was acknowledged by the debtor, it cannot be said that the claim of the creditor was barred by limitation. In case of 16 creditors, the credit balance was returned or adjusted for the next financial year. Provisions of Section 4 1(1) of the Act were not attracted. The respondent assessee is a company and ac...