S. 41(1): Unclaimed & unproven liabilities are deemed to have ceased and are assessable as income

ITO vs. Sajjankumar Didwani (ITAT Mumbai)

(i) When the liability continues to subsist year after year, for several years, serious and valid doubts as to its existence or as representing an existing liability, may arise. This is as in the very nature of the events, nobody would ordinarily, i.e., without justifiable reason, not claim his dues, representing his hard earned money […]