TaxTMI 
TaxTMI 
2024 (12) TMI 380
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....iled its Return of Income on 29-09-2015 declaring total income of Rs. 1,20,18,350/- then a Revised Return of Income on 22-09-2016 declaring total income at Nil after setting off brought forward losses of Rs. 4,44,19,330/-. The return was taken for scrutiny assessment. 3.1. During the course of assessment proceedings, it was noted from the computation of income that the assessee has set off the business loss of Rs. 4,37,55,674/- for A.Y. 2015-16 against the brought forward business loss of A.Y. 2007-08. Further, the assessee has set off the income from 'other sources' of Rs. 6,63,656/- for A.Y. 2015-16 against the unabsorbed depreciation of A.Y. 2002-03. However, on perusal of the return of income for A.Y. 2007-08 it was found that no such loss has been incurred during that year which could be carried forward to further years. Also no such proof such has been given by the assessee to claim the set off of unabsorbed depreciation of A.Y. 2002-03 of Rs. 6,63,656/- against the income of A.Y 2015-16. Therefore, vide show cause notice dated 22.12.2017, the assessee was requested to provide all the relevant material evidence such as copy of intimation u/s. 143(1), copy of order u/s. 143(3....
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....rred in law and on facts of the case in confirming action of the ld. AO in levying interest u/s. 234A/B/C of the Act. 6. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 6. Ld. Senior Counsel Shri Tushar Hemani appearing for the assessee submitted that the BIFR in Para 8 namely Reliefs and Concessions from various Financial Institutions/Banks, Secured Creditors, more particularly at Para 8.8 Reliefs and Concessions from CBDT are as follows: "8.8 From CBDT A. De-merged company (VDIL: Ice Cream) 1) To consider to exempt/grant relief to the company from the provisions of Section 41(1), 43-B, 45, 72 (3), 80 read with 139, 1150R and provisions of Chapter XVII of the Income Tax Act 2) To consider to accept payment of Income Tax dues (Rs.3.37 lakh) without interest and penalty in five equal annual installments beginning from FY 2007-2008 and to consider to waive interest and penalty, if payable. 3) To exempt VDIL and its promoters / directers from the penal provisions of the Income Tax Ack B. Resulting company (Dairy unit) 1) To consider to exempt/grant r....
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....sed the material available on record. As it can be seen from the BIFR's order dated 31-10-2007, under the head, Relief and Concessions to be granted from CBDT namely to consider to exempt/grant relief to the company from the various provisions of Section 41(1), 43B, 45, 72(3) and section 80 r.w.s. 139, 115JB and provisions of Chapter- VII of the Income Tax Act. Thus the assessee cannot be denied the benefit of Section 72(3) of the Act. 10.1. The Madras High Court in the case of Lakshmi Machine Works Ltd. (cited supra) considered the Supreme Court judgment in the case of Indian Shaving Products Ltd. Vs. BIFR and held as follows: "12. The SICA is a special enactment, the purpose of which is rehabilitation and revival of sick industries. The provisions of section 32(2) thereof read as under: "32. Effect of the Act on other laws- (1) ...... (2) Where there has been under any scheme under this Act an amalgamation of a sick industrial company with another company, the provisions of Section 72- A of the Income-tax Act, 1961 (43 of 1961), shall, subject to the modifications that the power of the Central Government under that section may be exercised by the Board without any recomm....
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....ompany for the previous year in which the amalgamation was effected for the purposes of the Income-tax Act, the Central Government must, upon the recommendation of the specified authority, be satisfied that the amalgamating company was not, immediately before the amalgamation, financially viable by reason of its liabilities, losses and other relevant factors, and that the amalgamation was in the public interest, By reason of section 32(2) of the said Act, where there has been under any scheme thereunder an amalgamation of a sick industrial company with another company, the provisions of section 72A of the Income-tax Act shall apply in relation to such amalgamation, subject to this modification that the power of the Central Government is to be exercised by the BIFR without the necessity of a recommendation by the specified authority mentioned in section 72A of the Income-tax Act. This is because, for the purposes of according sanction to a scheme of amalgamation of a sick industrial undertaking with any other company under section 18 of the said Act, the BIFR has to be satisfied that the amalgamating company is not financially viable, which is the effect of section 3(o) of the said ....