Contingent Liablity

Mangesh (Querist) 17 August 2010 This query is : Resolved
The company has filed reply to the intimation u/s 143(1)but the Income Tax has not replied to the notice till date of prospectus.Does this is a pending litigation for filing of Prospectus.
As there is no contingent liability arising out of this.

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soumitra basu (Expert) 22 August 2010
Yes, when the intimation under section 143 (1) issued demanding any sum, in that particular time the liability arose unless there is a rectification and/or appeallate order in against of it. Till the disposal of appeal and/or rectification order the amount should be treated as contingent liability.