2016 (6) TMI 134

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d June 23, 2006, passed by the learned Income Tax Appellate Tribunal, "C" Bench, Kolkata, in ITA Nos.2679(Kol) and 2470(Kol) of 2005 relating to the assessment year 2002-03. At the time when the appeal was admitted, the following question of law was formulated: "Whether on the facts and in the circumstances of the case Tribunal was justified in allowing assessee's claim to write off Rs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... expenses. It is on account of such administrative expenses that a sum of Rs. 2,36,89,387/- was advanced to CBL. Since the demerger took place pursuant to the order passed in October 1999 with effect from April 1, 1998, contention was raised that the money paid after April 1, 1998 was recoverable. CBL contended that it had rendered services in lieu of such payment. Ultimately, the assessee appoint....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eport filed by the Chartered Accountant appointed by the assessee to examine the reality of the scheme of the CBL and the claim of the CBL as correct. Besides that, it was undisputed that the CBL has been declared as sick industry by the Board for Financial and Industrial Reconstruction and hence any dues from it cannot be recovered as there is prohibition contained under Sick Industries Act. Basi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....998 to March 1999, the dispute of liability was ultimately crystallized during the period under consideration by the report of the Chartered Accountant referring, inter alia that the CBL has insured amount during that period and it was declared as sick industry by BIFR and any amount from such industry is not recoverable as there is prohibition contained in the Sick Industries Act. Then only the a....