Remission/cessation of liability by BIFR cannot be taxed under Income Tax Act

Arcot Textiles Mills Ltd. Vs ACIT (ITAT Chennai) The assessee is a sick company under Sick Industrial Companies (Special Provisions) Act. The BIFR vide its order dated 04.05.1999 declared the company as sick industry. Further, the BIFR has allowed certain reliefs and concessions vide its order dated 17.05.2012, as per which, the Board has granted 90% relief with respect to secured and unsecured to creditors and also granted relief under the provisions of Income Tax Act, 1961. Therefore, from the order of the BIFR, it is very clear that reliefs and concessions allowed towards repayment of liabi...