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2013 (7) TMI 584 - DELHI HIGH COURTJurisdiction of BIFR - Scaling down of interest - Whether the income tax authorities are justified in stating that the order of BIFR, to the extent that it scaled down interest are beyond jurisdiction - Held that:- Prior special law will prevail over a later and general law - It should first be ascertained what the enacting part of the section provides on a fair construction of the words used according to their natural and ordinary meaning, and the non obstante clause is to be understood as operating to set aside as no longer valid anything contained in relevant existing laws which is inconsistent with the new enactment - In the case of Section 32 SICA, the specific exclusion of two enactments, and the express reference to Section 72A of the Income Tax Act, to say that its provisions apply (by Section 32 (2)) manifest Parliamentary intention that provisions of SICA have to prevail over those of the Income Tax Act - Following decisions of Aswini Kumar Ghosh & Anr v. Arabinda Bose & Anr, [1952 (10) TMI 32 - SUPREME COURT] and Mewar Sugar Mills Ltd. v. Chairman, Central Board of Direct Taxes & Anr [1998 (10) TMI 512 - DELHI HIGH COURT] - Decided in favour of Assessee. Superseding jurisdiction - Whether Board of Direct Taxes’ views have primacy over that of BIFR - Held that:- Income tax authorities were not given notice of remitting their matter back to BIFR and the order of BIFR reveals that it applied its mind, and granted limited concession only as regards reduction and waiver of interest - The larger pleas of the company towards income tax dues and concessions were denied by the BIFR - Having regard to these circumstances, and Section 32 of the Act as well as the Circular No. 683 of 1994 the failure of income tax authorities to inform the Director General would not result in the invalidity of BIFR’s scheme - Period for operation of the limited concessions in the scheme has also apparently ended - In view of the concurrence of the other secured creditors, and implementation of the approved scheme, it would be inequitable and unjust to put the clock back, at the behest of the Income Tax authorities - Decided in favour of Assessee.
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