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2004 (11) TMI 48 - HC - Income TaxTribunal confirming disallowance of capital loss in respect of an amount advanced by the assessee to M/s. Fort William Company Limited, Calcutta, and written off in the accounts relevant to the AY 1989-90 on account of the borrower-company being declared a sick industry - we are of the opinion that the Tribunal rightly reversed the order of the Commissioner of Income-tax (Appeals) by holding that there is no extinguishment of the capital asset during the previous year relevant to the assessment year 1990-91. Even though we have not seen a copy of the Board for Industrial and Financial Reconstruction order, going by the operative portion of the order of the Board for Industrial and Financial Reconstruction we are convinced that under the rehabilitation scheme debts due to creditors from the sick industry rehabilitated are kept intact. We therefore find no merit in the appeal. The appeal is dismissed.
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