HC upheld ITAT order allowing carry forward of losses and depreciation to SICK Company under BIFR

Principal CIT Vs M/s Rajasthan Explosives and Chemicals Ltd. (Delhi High Court) 1. The Revenue in this appeal under Section 260A of the Income Tax Act, 1961 questions the decision of the Income Tax Appellate Tribunal (“ITAT”). 2. The ITAT set aside the findings of the lower authorities denying the carry forward of losses and depreciation for AY 2001-02. The narrow ground on which these benefits were denied was that the assessee/company which had been declared sick and was facing the supervision under the Board for Industrial and Financial Reconstruction (“BIFR”) was subject to above sc...