DIRECTOR GENERAL OF I.T(ADMN) vs M/S GTC INDUSTRIES LTD.

The Supreme Court addressed the rehabilitation of M/s GTC Industries Ltd. under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), specifically citing Section 15. The Court upheld the Board of Industrial and Financial Reconstruction's approval of the Draft Rehabilitation Scheme (DRS), which included tax reliefs under Sections 41(1), 115JB, 43-B, and 72(3) of the Income Tax Act, 1961. The Court affirmed that the DRS was valid and the income tax demands raised were to be considered in light of the rehabilitation process, thereby allowing the company to carry forward unabsorbed losses and waiving penalties during the rehabilitation period.