2002 (11) TMI 52

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.... under the Companies (Profits) Surtax Act. The question of law referred under the Income-tax Act reads as under: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessment has lost its foundation in view of the order of a Division Bench of the High Court remitting the matter to the single judge for fresh disposal. The facts are not in dispute. The assessee is a public limited company incorporated in the year 1963. The assessee-company incurred a huge loss up to September 30, 1974, and it was declared as a relief undertaking under the Tamil Nadu Relief Undertaking (Special Provision) Act, 1969, and there was a lock-out also. The company had an accumulated loss of Rs. 362....

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....o call for a meeting of the different classes of unsecured creditors for their consent to the scheme in accordance with law. The Assessing Officer was of the view that on the basis of the scheme sanctioned by the learned single judge of this court certain sacrifices have been made by all the creditors and invoking the provisions of section 41(1) of the Act, he brought to tax a sum of Rs. 95,58,053 being the interest amount sacrificed by the creditors and also a sum of Rs. 21,000 being the insurance, commitment charges, etc., sacrificed by the creditors. The Assessing Officer also levied tax on the sacrifice relating to suppliers and non-statutory dues amounting to Rs. 22,78,838. The order of the Assessing Officer was under challenge in t....

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....n view of the judgment of the Division Bench of this court in O.S.A. No. 215 of 1984 reversing the judgment of the learned judge who granted approval to the scheme. In other words, the scheme has not come into force. We do not find any error or infirmity in the order of the Appellate Tribunal holding that section 41 of the Act has no application. Accordingly, we answer the question referred in T.C. No. 436 of 1999 in the affirmative, against the Revenue and in favour of the assessee. No costs. T.C. Nos. 35 and 36 of 1998: This is a reference under the Companies (Profits) Surtax Act. Pursuant to the directions of this court in T.C.P. Nos. 361 and 362 of 1996 dated August 5, 1997, the Appellate Tribunal has stated a case and referred th....