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 asse

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