Effect of the order passed by the Board for Industrial and Financial Reconstruction under a scheme for the rehabilitation of sick units

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..... All Chief Commissioners and Directors-General of Income-tax. Subject : Effect of the order passed by the Board for Industrial and Financial Reconstruction under a scheme for the rehabilitation of sick units. The Sick Industrial Companies (Special Provisions) Act, 1985, was passed by the Parliament and received the assent of the President on the 8th of January, 1986. The Act was .....

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..... e provisions of the Foreign Exchange Regulation Act, 1973, and the Urban Land (Ceiling and Regulation) Act, 1976, for the time being in force or in the memorandum or articles of association of an industrial company or in any other instrument having effect by virtue of any law other than this Act." The Central Board of Direct Taxes have been advised that if a scheme is sanctioned in pursuance of .....

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..... he interest liability, this remission will become chargeable to tax under section 41(1) of the Income-tax Act, in the year of reduction or waiver by the banks. It is possible that for speedier rehabilitation, the BIFR in its scheme provides that section 41(1) of the Income-tax Act, would not apply in the case of the sick company. The Assessing Officer, in these circumstances, will not subject to t .....

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