Cessation’ of liability cannot be claimed by AO if proceedings for recovery pending against Assessee

DCIT Vs Surbhit Impex Pvt. Ltd (ITAT Mumbai) It is undisputed position that as on the relevant point of time, the proceedings against the assessee for recovery of these amounts were pending before the Hon’ble judicial forums. It was only on 29.01.2018, i.e., which much after the end of the relevant previous year, that Their Lordships of Hon’ble Bombay High Court dismissed the Winding up Petitions filed by these creditors in the judgments reported at Jiangsu Go Intl Group Hua Tai Import & export Co., China vs. Surbhit Impex Private Limited (CP 744 of 2014) dated December 21, 2017 and Zh...