Supertex Industries Limited Vs DCIT (ITAT Mumbai)
The appeal concerns Assessment Year (AY) 2012-13, in which the assessee challenged the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 07.05.2018 that upheld the Assessing Officer’s (AO) computation of book profits under section 115JB and consequent Minimum Alternate Tax (MAT) liability. The AO had completed the assessment under section 143(3) read with section 147 on 09.03.2015, determining book profits at Rs. 10,46,418 and levying MAT.
The assessee is engaged in manufacturing, processing, trading, export, and import of polyester and synthetic yarns and trading in fabrics. It was declared a sick company by the Board for Industrial and Financial Reconstruction (BIFR) on 09.02.2005, with State Bank of India appointed the Operating Agency to formulate a revival scheme. BIFR sanctioned the revival scheme (SS-08) on 08.09.2008. Subsequently, the company’s net worth became positive as per audited and provisional balance sheets for 31.03.2009 and 31.03.2010. Based on this, the assessee requested discharge from BIFR, and BIFR held on 16.06.2010 that the assessee ceased to be a sick company. The order also directed that unimplemented provisions of SS-08 would be implemented and monitored by the company’s Board of Directors, and SBI was discharged as Monitoring Agency.
