DGIT (Admn) - Nodal agency for co-ordination between the BIFR and the CBDT
BIFR which stands for Board for Industrial and Financial Reconstruction is said to be the Board for Industrial Funeral Rites.
CBDT has nominated the Director General Income Tax (Administration) to be the Nodal agency for co-ordination between the BIFR and the CBDT and between the AAIFR and the CBDT.
It will be the responsibility of DGIT (Admn) to represent the CBDT before BIFR and AAIFR in every case in which Income Tax reliefs is sought under the Draft Rehabilitation Scheme or in the Sanctioned Scheme circulated by BIFR/AAIFR .
In cases where the company and the assessing officer have quantified the Income tax reliefs the DGIT (Admn) will communicate the consent or denial of consent to BIFR at the time of hearing itself after obtaining the approval of CBDT.
It is the responsibility of DGIT (Admn) to obtain the approval of CBDT in every case in which Income tax relief/concessions is sought and to communicate the approval of CBDT to BIFR and the concerned assessing officer.
The decision thus communicated by the DGIT (Admn) on behalf of the CBDT is binding on all assessing officers.
The assessing officer should give the Income Tax reliefs to sick companies only after obtaining the approval as mentioned above.
In cases where BIFR/AAIFR is taking a different view from that of the CBDT, it will be the responsibility of DGIT (Admn) to file appeal before the appellate authority (AAIFR) or before the Delhi High Court as the case may be.
In cases where the sick companies file appeals against the order of BIFR/AAIFR in any of the High Court other than Delhi High Court, it will be the responsibility of concerned Chief Commissioner of Income Tax (Administration) to defend the case in the respective High Court.
CBDT Circular No. 5/2009, Dated: July 2, 2009