August 2009
Procedure for representation before BIFR and AAIFR : Circular No. 5/2009, dated 2-7-2009.
By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Nimesh Dedhia, Vijay Kewalramani
Chartered Accountants
Reading Time 2 mins
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Part A : Direct taxes
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Procedure for representation before BIFR and AAIFR :
Circular No. 5/2009, dated 2-7-2009.
For granting income-tax reliefs/concessions to be given to
sick companies for their rehabilitation under the Sick Industrial Companies (SICA)
Act, 1985 the CBDT has issued a Circular superseding all earlier ones issued on
this account — prescribing method to be followed before the Board for Industrial
and Financial Reconstruction (BIFR) and the Appellate Authority for Industrial
and Financial Reconstruction (AAIFR).
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The Director General Income Tax
(Administration), [DGIT (Admn.)] has been nominated as a nodal agency for co-ordinating
between BIFR, AAIFR and CBDT.
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Every scheme where financial
assistance is sought u/s.19(2) of SICA, the consent would be granted by the
DGIT (Admn.) by considering each case on merits. Where the tax relief has been
quantified, the DGIT (Admn.) would communicate the consent/denial after
getting it approved from the CBDT. In case of incomplete information, after
calling for requisite information, the file would be put up to the CBDT and
the decision be conveyed to BIFR.
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Since all the above relief
decisions are vetted by the CBDT, they would be binding on all Assessing
Officers and relief would be granted to the assessees accordingly.
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In case BIFR/AAIFR takes a
different view from CBDT, the DGIT (Admn.) would be responsible for filing an
appeal before AAIFR/Delhi High Court as the case may be. Where the case is
filed by sick companies, the CCIT (Admn.) would be responsible to represent
the Department before the Appellate Authority.
