The cessation of the liability may accrue either by operation of law, i.e., on the liability becoming unenforceable in law by the creditor, provided the debtor unequivocally declares his intention not to own the liability even if demanded by the creditor; it may also accrue by way of a judicial pronouncement, absolving the assessee from the liability; it may accrue if there is a contract between the parties whereby the liability gets extinguished or it may come to an end by discharge of the debt; some benefit, however, must accrue to the assessee by virtue of remission or cessation of the liability, as the case may be
HIGH COURT OF DELHI
CIT
v.
Auto Kashyap India Pvt. Ltd.
ITA No. 418/2010
April 12, 2010
