Government Of India

Directorate Of Income-Tax (Recovery)
6th Floor, Mayur Bhawan, Connaught Circus, New Delhi – 110001
Ph. No. 011-23411993, Fax No. 011-23413218
Email : [email protected]

F. No. DIT(R)/BIFR/2016-17/643

Dated : 07-02-2017


All Pr. Chief Commissioners of Income Tax

(Cadre Controlling Authorities)

Madam/ Sir

Sub : Claim of reliefs envisaged by BIFR in Sanctioned Rehabilitation Schemes by sick companies in their ITRs – reg –

Claim of reliefs under BIFR Schemes by sick companies in their ITRs

The BIFR Unit of Directorate of Income Tax(Recovery) looks after the work relating to sick companies who had have filed references under the erstwhile Sick Industrial Companies (Special Provisions) Act, 1985(SICA) which has now been repealed w.e.f. 01-12-2016. On the date of repeal, the processing of reliefs envisaged in the Rehabilitation Schemes approved by BIFR is pending in many cases.

In the course of processing the relief, it has been noticed that some of the sick companies, in whose cases the BIFR had sanctioned Rehabilitation Schemes envisaging reliefs/concessions for consideration of the Department, have claimed the reliefs in their returns. Most of the reliefs envisaged by BIFR are beyond the provisions of Income Tax Act’ 1961 as under Sick Industrial Companies (Special Provisions) Act’ 1985 (SICA), the BIFR had sweeping powers over-riding all provisions of various laws including Income Tax Act. However, in most of the cases, these reliefs envisaged by BIFR from the Department are for consideration and approval of the competent authority i.e. CBDT. The reliefs/concessions envisaged by BIFR in such cases are therefore, not automatic and can be claimed and allowed only after approval and issue of appropriate orders by CBDT. As the reliefs are yet to be processed by the Department in several cases, the apprehension that these companies have not already availed the reliefs merely on the basis of passing of orders by BIFR has to be ruled out to safeguard the interest of revenue and prevent any leakage thereof.

It is therefore requested that the Assessing Officers may kindly be directed to examine the assessment records of the companies starting from the Cut-Off-Date to find out whether any relief has been wrongly claimed by the company and inadvertently allowed though the reliefs envisaged in Sanctioned Scheme have not been processed by this Directorate and the order allowing the relief has not been passed by the CBDT. In case, the reliefs/concessions have been wrongly allowed, appropriate remedial action has to be taken immediately. The process of identifying the Assessing Officers of such cases has been under taken separately and a specific communication in the matter to the jurisdictional Pr. Chief Commissioner of Income Tax is also being sent shortly.

Yours faithfully

(Kavita Bhatnagar)
Addl. Director General (Recovery)
New Delhi

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