9911796707
TMI Blog2011 (11) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... comply with order dated 18.11.2004 and 24.06.2009 passed by BIFR, inter alia, by granting following reliefs and concessions: i) Business losses be allowed to carry forward under Section 72 of Income Tax Act, 1961 for a period of 8 years from the cut off date i.e. 01.10.2004. ii) No interest and/or penalty be levied. iii) Condone the delay in filing of Income Tax Return for the AY 2005-06 under Section 139 read with the section 80 of the Income Tax Act, 1961. iv) The provisions of Section 115JB should not be applicable until such time net worth of the company exceeds Rs.63.71 Crores. (b) In the alternative, issue a Writ of and/or in the nature of Mandamus directing the Respondents to consider and gran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y 2005-06 as per SOP dated 24.06.2009. In this light also no relief has been considered u/s. 72 of the IT Act beyond its provisions." 4. It is apparent from the said order that the Director of Income Tax (Recovery) has held that the petitioner had given up their request for relief under Section 72 as the said Section was omitted from the request letter dated 17th July, 2009. There is merit in the contention of the petitioner that the aforesaid authority has misunderstood the stand of the petitioner and the aforesaid letter. We have also examined the letter dated 17th July, 2009. The said letter refers to several sections of the Act and concessions are prayed for, but it is stated that similar reliefs and concessions, which have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the petitioner that the cash flow statement was enclosed with the sanctioned scheme. Learned counsel for the petitioner has drawn our attention to the projected profitability statement enclosed at page 74 of the paper book as per which till the year ending 31st March, 2009, it was projected that the petitioner company would not be liable to pay any taxes. 5. We have highlighted the said aspects as it is the contention of the petitioner that these aspects have not been considered and examined by the respondent authorities while recording the second reason for rejecting the request for relief under Section 72 of the Act as it is stated that the petitioner company's net worth became positive in the year 2005-06 as per the statement of pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and directed the income tax authority and DGFT to implement the provisions of SS-04 with regard to relief and concessions as envisaged in paragraph E-IV(i) and (ii) on page 9 of SS-04. SS-04 refers to the sanctioned scheme and paragraph E-IV(i) relates to the request to the Central Government to consider grant of usual tax and other reliefs and concessions. 8. It may be clarified that we are not issuing any mandamus or direction to the respondent authorities to grant concession under Section 72 of the Act. What is required is that the respondent authorities must consider the request of the petitioner for grant of concession/relief under Section 72 of the Act in view of their contentions, the statement of profit and the cash flow statement. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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