2017 (4) TMI 1656

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....to ICICI Home Finance Company Ltd. by entering into a contract dated 01.05.2008 with them. However, by letter dated 20.04.2009 the assessee was informed by the ICICI Home Finance Co. Ltd. that the agreement dated 01.05.2008 was declared void ab initio by the Board of Directors in their meeting held on 20.04.2009 as a result of which the transaction of income was reversed by the assessee as there was no legally enforceable right to such income under a void contract. However, the AO added back a sum of Rs. 2,05,39,063/- and Rs. 21,73,292/- to the income of the assessee. The assessee contended that the amount of Rs. 2,17,13,292/- includes Rs. 2,05,39,063/- also. By way of order passed u/s 154 of the Act the AO rectified the....

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....that in case of a contract covered in section 297 (1) read with sub-section (2), prior consent of the Board of Directors of the company is more than Rs. 1 crore, the said company, ostensibly upon obtaining the consent from the BOD, is also required to obtain prior approval from the Central Government. In circumstances of urgent necessity, these provisions also allow obtaining the consent of the Board within three months of signing of the agreement, where agreement has been entered into without the consent of the Board. In the absence of the consent of the Board, or if consent is not accorded to any contract under this section, anything done in pursuance of the contract shall be voidable at the option of the Board. The provisions relati....