SC notice to I-T dept on SAILs plea

Written by fe Bureau | New Delhi | Updated: Nov 16 2012, 09:35am hrs
In a matter that will impact rehabilitation of sick industrial undertakings, the Supreme Court has sought reply from the income-tax department on whether a sick company can claim tax benefits on loan waiver by the government.

The issue was raised by SAIL over a loan waiver of R5,277 crore granted to it for rehabilitation purposes in 2000.

A bench headed by Justice DK Jain issued notice to the commissioner of income tax on SAILs appeal against the Delhi HC order that ruled against the PSU. SAIL senior counsel Harish Salve and counsel Rahul Kaushik sought the courts attention in view of a substantial and recurring question of law arising particularly in respect of sick industrial undertakings in the process of rehabilitation.