GOODRICKE GROUP LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal under Section 260A of the Income-tax Act, 1961 is at the instance of an assessee and is directed against an order dated April 16, 2004 passed by the Income-tax Appellate Tribunal, "B" Bench, Kolkata, in Income-tax Appeal bearing ITA No.892(Kol)/2003 for the Assessment Year 1995-96.

(2.) THE facts giving rise to filing of this present appeal may be summed up thus:

(3.) IN support of the aforesaid point, Mr. Khaitan contended that his client maintains mercantile system of accounting and there is no dispute that the cheques for the aforesaid amount were duly given to the creditors who, however, did not encash those cheques. According to Mr. Khaitan, merely because those creditors did not encash the cheques, does not imply that those debts have been either extinguished or become barred under the law of limitation. According to Mr. Khaitan even if it is assumed for the sake of argument that the period of limitation for filing a suit for recovery of that amount has become barred, the debt of his client to the aforesaid extent has not been extinguished as pointed out by the Supreme Court in various decisions. IN support of such contention, Mr. Khaitan relies upon the following decisions: