9911796707
TMI Blog2011 (2) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... K. Modi and Shri S.D. Singh for Sri V.K. Modi. The rehabilitation of Modi Industries Ltd. is still pending with the Board of Industrial Finance and Reconstruction (BIFR). By an order dated March 12, 2007, a rehabilitation scheme was prepared, with cut-off date as June 30, 2007. The Commercial Tax Department, U.P., represented with an application dated February 14, 2007, to allow the recovery of current dues, on which the BIFR passed an order on March 26, 2008. The operative portion is quoted as follows: "Having considered the facts on record, the Bench observed that in the hearing held on March 12, 2007, the Bench had directed the promoters of the company to submit fully tied up proposals jointly or severally, to IDBI (OA) within three mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very and attachment orders dated August 10, 2009 and October 25, 2009, to recover Rs. 79,00,917 for the assessment year 1983-84 towards penalty, in pursuance of order under section 4B(6) and recovery of Rs. 13,12,793 towards tax liability plus interest for the assessment year 1986-87, in pursuance of the order under section 49(8) of the U.P. Trade Tax Act. The assessment orders were subject-matter of appeal. The appellate authority remanded the matter. The assessing authority vide order dated February 11, 2009 arrived at the same figure towards penalty, interest and tax dues. It is contended by Sri Dhruv Agarwal that the demand raised by assessment order dated February 11, 2009, after remand, is not current liability, and has to be treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is payable after the liability is ascertained and quantified. The words "outstanding dues" and "current dues" have to be understood in the context in which rehabilitation scheme is prepared, and the object and purpose of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The object of preparing rehabilitation scheme, and to give a protective umbrella to the sick units for rehabilitation is to provide for deferment or for a different treatment of the payment of dues, prior to the cut-off date, which may be termed as outstanding dues. The current dues for the purpose of rehabilitation scheme are those dues, which fall due after the cut-off date. The liabilities created, taxes falling due, assessed and d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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