SUPERTEX INDUSTRIES LTD,MUMBAI vs. DCIT CIR 4(3)(2), MUMBAI
Income Tax Appellate Tribunal, MUMBAI BENCHES “G”, MUMBAI
Before: Justice (Retd.) C V Bhadang, Hon’ble & Ms. Padmavathy S, Hon’bleSupertex Industries Ltd., 45-49 Babu Genu Road, Princess Street, Kalbadevi, Mumbai 400 002. PAN AAACS7274D
Per Justice (Retd.) C V Bhadang, President:
By this appeal the assessee is challenging the order dated 07.05.2018
passed by the CIT(A)-9, Mumbai, [CIT(A) for short] by which the assessment order passed by the Assessing Officer (AO) u/s. 143(3) r.w.s. 147 of the Act has been confirmed. By order dated 09.03.2015, the Assessing Officer has computed the book profits of the assessee u/s. 115JB at Rs. 10,46,418/- and has levied tax accordingly. The appeal pertains to A.Y. 2012-13. 2. The brief facts are that the assessee is in the business of manufacture, processing, trading, export and import of polyester and synthetic yarns and trading in fabrics. The assessee was declared as a sick undertaking by Board for Industrial and Financial Reconstruction (BIFR) on 09.02.2005 and State
ITA 4649/Mum/2018
Supertex Industries Ltd.
Bank of India was appointed as Operating Agency to formulate a revival scheme. The scheme of revival of the assessee company was sanctioned by BIFR vide order dated 08.09.2008 (SS-08). Subsequently, the net worth of company became positive as per Audited Balance Sheet (ABS) as on 31.03.2009
and provisional balance sheet as on 30.03.2010. In such circumstances, the assessee requested BIFR to discharge it from the purview of SICA/BIFR.
Accordingly, vide order dated 16.06.2010, BIFR held that the company ceased to be a sick industrial company and the revival of the company was sustainable.
Following is the operative part of the order passed by BIFR on 16.06.2010. “4.4 Having considered the submissions made in the hearing and materials on the record, the Bench issued the following directions:-
(a)
The company M/s. Supertex Industries Ltd ceases to be a sick industrial company, within the meaning of section 3(1)(o) of the SICA as its net worth has turned positive as per ABS as on 30.03.2009 and as per the Provisional Balance Sheet as on 31.03.2010. The revival of the company is sustainable. It is therefore discharged from the purview of SICA/BIFR.
(b)
The un-implemented provisions of SS-08, as may be there, would be implemented by the company/promoters and concerned agencies and implementation would be monitored by the Board of Directors (BOD) of the company.
(c)
The company is directed to pay MA fee of Rs.2.00 lakhs to MA(SBI) immediately.
(d)
The Board discharges State Bank of India from the responsibility of Monitoring Agency (MA)
(e)
The Special Director, if any, appointed by the Board on company’s
‘Board of Directors’ (BOD), would stand discharged with immediate effect. The company would complete necessary formalities with the concerned ‘