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

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..../1988 To             All Chief Commissioners and             Directors-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....

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....this Act and of any rules or schemes made thereunder shall have effect notwithstanding anything inconsistent therewith in any other law except the provisions of the Foreign Exchange Regulation Act, 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....

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....est liability in a particular assessment year. Subsequently, if, in a scheme sanctioned by the BIFR, banks are directed to either waive or reduce the interest liability, this remission will become chargeable 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....