Bharat Technologies Auto Components Ltd. Vs ITO (ITAT Chennai)
ITAT Chennai held that in view of pending decision before Madras High Court which has a bearing on the assessment, the assessment is restored back to the file of AO with a direction to await the pending decision.
Facts- The assessee filed return of income on 27.11.2003 admitting an income of Rs.1,14,84,108/- and later filed the revised return on 01.11.2004 admitting ‘NIL’ income. AO noted that the reason for filing the revised return was due to the adjustment of loss carried forward in the case of M/s. Ucal Power Systems Ltd., (M/s. UPSL), which was declared as a sick company by BIFR and taken over by the assessee company as per rehabilitation cum merger scheme approved by the BIFR.
AO denied the carried forward losses and unabsorbed depreciation from M/s. UPSL and made an addition of Rs.1,25,32,085/- and thereafter also made an addition of Rs.4,11,40,145/- u/s.41(1)(b) of the Act.
On appeal, the Ld.CIT(A) has confirmed the same by taking note of the history of this case that M/s. UPSL filed a reference u/s.15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 and at the hearing held on 23.04.1988, it was declared as a Sick Industrial Company under Section 3(1)(0) of the SIC Act.
