Central Govt Withdraws Circulars on Financial Aid for Sick Industries; Future Cases Assessed Individually per Section 19(2.
Circular No. 683, dated June 8, 1994, announces the withdrawal of Circulars Nos. 523 and 576, which previously outlined procedures for granting consent by the Central Government for financial assistance under the Direct Tax Laws to rehabilitate sick industries as per the Sick Industrial Companies (Special Provisions) Act, 1985. The withdrawal was due to the oversight of section 19(2) of the Act, which requires consent from all parties involved in financial assistance. Moving forward, each case will be individually assessed for consent. The Director-General of Income-tax (Administration) will coordinate between the relevant boards. Cases decided under the previous circulars will not be reopened.
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