No addition u/s 41(1) for unclaimed stale Drafts / Pay Orders if liability to pay back not ceased

Brief of the Case

Karnataka High Court held In the case of CIT & ACIT vs. Karnataka Vikas Grameen Bank that Section 41(1) attracted when an allowance or deduction is sought to be made in respect of loss, expenditure or trading liability is incurred by the assessee. In the instant case, the sum of Rs.58,38,581/- has remained with the assessee owing to the fact that the payees or holders of the draft/pay orders had not encashed them. The language employed by the legislature being unambiguous, i

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