OXIDES AND SPECIALITIES LIMITED,NAVI MUMBAI vs. CIT (A)-24, MUMBAI

At the time of hearing, the learned representative for the assessee submitted that the only issue in dispute was an addition of Rs.3,05,64,703/- made by the Assessing Officer by invoking Sec. 41(1) of the Act. The learned representative pointed out that assessee was a ‘sick industrial company’ within the meaning of Sec. 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 and is registered with the Board for Industrial and Financial Reconstruction (BIFR). The learned representative pointed out that the addition represented various sundry credits which had remained outstanding for payment; and, the same has been treated by the Assessing Officer as cessation of liability in terms of Sec. 41(1) of the Act. The learned representative stated that assessee had substantive losses even after considering the aforesaid addition and such losses have also not been set-off in any subsequent years.

It was asserted by the learned representative that assessee seeks to pursue deductibility of the aforesaid sum in the year when the said liabilities are paid off by it as per law and, in that light, it does not wish to pursue the present appeal. The learned representative submitted that the appellant be allowed to withdraw the present appeal.

The ld. DR had no objection to the prayer of the assessee to withdraw the present appeal.

Considering the prayer of the assessee, the captioned appeal of the assessee is dismissed as withdrawn.