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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..... ted to Circular No.523, dated 5th October, 1988 (See [1988] 174 ITR (St.) 1), wherein it was pointed out that if the Board for Industrial and Financial Reconstruction (BIFR) sanction a scheme under section 17(3) of the Sick Industrial Companies (Special Provisions) Act, 1985, specifically excluding or limiting the application of sections 41(1), 79 and 115J of the Income-tax Act, 1961, in respect o .....

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..... al Companies (Special Provisions) Act, 1985, is sanctioned by the Board for Industrial and Financial Reconstruction under section 18 of that Act, specifying a particular tax treatment for the carry forward and set off of loss incurred by the sick company, the said scheme will have overriding effect over the provisions of section 80 of the Income-tax Act. In such a situation, the Assessing Officer .....

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..... ardless of the fact that the return of income has not been filed within the time allowed under section 139(3). Once the scheme is sanctioned by the Board for Industrial and Financial Reconstruction, it will have overriding effect over the provisions of the Income-tax Act, 1961, in regard to the matters covered in Circular No.523 of 5th October, 1988 (See [1988] 174 ITR (St.) 1), and in this Circul .....

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