Effect of the order passed by the Board for Industrial and Financial Reconstruction under a scheme for the rehabilitation of sick units

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rectors-General of Income-tax. Subject: Effect of the order passed by the Board for Industrial and Financial Reconstruction under a scheme for the rehabilitation of sick units. The Sick Industrial Companies (Special Provisions) Act, 1985, was passed by the Parliament and received the assent of the President on the 8th of January, 1986. The Act was introduced with a view to securing timely detect....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., 1973, and the Urban Land (Ceiling and Regulation) Act, 1976, for the time being in force or in the memorandum or articles of association of an industrial company or in any other instrument having effect by virtue of any law other than this Act." The Central Board of Direct Taxes have been advised that if a scheme is sanctioned in pursuance of section 17(3) of the Act, it will have an overriding....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rgeable to tax under section 41(1) of the Income-tax Act, in the year of reduction or waiver by the banks. It is possible that for speedier rehabilitation, the BIFR in its scheme provides that section 41(1) of the Income-tax Act, would not apply in the case of the sick company. The Assessing Officer, in these circumstances, will not subject to tax the remission or cessation of interest liability u....