By Ajay R. Singh, Advocate
13. ATV Projects India Ltd, vs. The Central Board of Direct Taxes & Ors.
[WP NO. 1241 OF 2020, Dated: 17th July, 2023, (Bom.) (HC)]
Section 119(2) — Application for carried forward of losses made to CBDT — Unreasoned Order passed rejecting the application — Reasons cannot be supplemented — Remanded for reconsideration.Petitioner had filed application under Section 119 (2)(a)/(b) of Income-tax Act, 1961, before CBDT, for carry forward losses of Assessment Years 1998–99 to 2004–05 amounting to Rs.159.87 crores for further period.
The background of the case is that the Petitioner was incorporated on or about 26th February, 1987 and was engaged in the business of executing turnkey projects. After seven or eight years of operation, Petitioner suffered severe losses due to non-availability of working capital funds from the bank and also due to non-recovery from debtors. Due to the mounting loss, Petitioner filed a Reference with the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act,1985 (SICA). Petitioner was declared sick by BIFR on 21st April, 1999 and IDBI was appointed the operating agency for the purpose of formulating a scheme.
Petitioner filed a Draft Rehabilitation Scheme (DRS) before the BIFR. Petitioner having settled and paid 27 out of 28 secured lenders, BIFR directed Petitioner to file an updated DRS and IDBI the operating agen
