Tax Dues of Company settled by direction of BIFR under SICA Act: Supreme Court upholds Order of Madhya Pradesh HC [Read Order]
The court viewed that there is nothing to consider as the tax dues of the company settled by direction of the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 19851
Supreme Court – Madhya Pradesh High Court – Tax Dues of Company – BIFR – TAXSCAN
Supreme Court – Madhya Pradesh High Court – Tax Dues of Company – BIFR – TAXSCAN
The Supreme Court of India upheld the order of the Madhya Pradesh High Court which dismissed the writ petition of the assessee against the order of the commercial tax officer determining tax liability. The court viewed that there is nothing to consider as the tax dues of the company settled by direction of the Board for Industrial and Financial Reconstruction ( BIFR ) under the Sick Industrial Companies ( Special Provisions ) Act, 19851.
The appeal arose out of the judgment of the High Court of Madhya Pradesh. Niket Udyog Ltd, the petitioner filed Writ Petitions against the order of the Commercial Tax Officer determining the tax liability under the M.P. Sales Tax Act, M.P. Vat Tax Act, Central Sales Tax Act and Entry Tax Act. Appeal against the decision of the Commercial Tax Officer was dismissed by the Additional Commissioner dated 11.08.2006. The High Court by the order impugned dismissed the Writ Petitions.
It was submitted that the appellant company was referred to BIFR way back on 26.04.2000 and while proceedings under the Sick Industrial Companies ( Special Provisions ) Act, 19851 were continuing, the Commercial Tax Officer proceeded with tax determination and passed an ex-parte order on 04.12.2004.
Justice Pamidighantam Sri Narasimha and Justice Prasanna Bhalachandra Varale viewed that proceedings under the SICA Act were concluded by the order passed by the Board for Industrial and Financial Reconstruction ( BIFR ) on 28.01.2024. It was evident that the issue relating to the tax claim by the State of Madhya Pradesh has attained finality.
“In view of the representation of the Government of Madhya Pradesh in the order of BIFR that the Company had settled their dues, followed by the final direction of the BIFR, that Government need not attend further hearings, nothing remains for consideration in these appeals.” the court held.
Mr. Gaurav Agarwal, Senior Counsel appeared for the appellant and Ms. Mrinal Ekar Majumdar, counsel appeared for the respondent-State.
To Read the full text of the Order CLICK HERE
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