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Bharat Heavy Electricals Ltd. vs Income-Tax Officer on 16 May, 1983 cites

Income-Tax Officer, B-Ward vs Official Liquidator, Swaraj Motors ... on 21 July, 1976

...If there is an apparent conflict between two independent provisions of law, the special provision must prevail. Section 49E is a general provision applicable to all assessees and in all circumstances ; Sections 228 and 229 deal with the proof of debts and their payment in liquidation. In our opinion Section 49E can be reconciled with Sections 228 and 229 by holding that Section 49E applies when insolvency rules do not apply. Accordingly, agreeing with the High Court, we hold that the Income-tax Officer was in error in applying Section 49E and setting off the refund due....(pp. 334-35) The Kerala High Court also had occasion to consider this very aspect in ITO v. Official Liquidator, Swaraj Motors (P.) Ltd. [1982] 134 ITR 132 and held that the provisions of the Companies Act which are special provisions should prevail over the provisions of the Act, which are of general nature. By parity of reasoning with reference to the facts in the instant case, the same principle, in our opinion, should be applied. The special provisions in relation to the order passed by the Government of India, read with Section 396 of the Companies Act, especially, governing the treatment to be given to the losses of HEL, must give way to the general provisions under the Act. The provisions under the Act apply generally to all amalgamations but when there is a special provision like the one mentioned in clauses 3 and 4 of the order, the same should prevail. We may repeat that strictly speaking there is no conflict because Clause 4 treats the losses of HEL as the losses of BHEL. Even if a conflict is seen, the provisions of the Companies Act will have to be followed in preference to the provisions of the Act. In view of the above the assessee should succeed in regard to both business loss as well as depreciation.
Kerala High Court Cites 17 - Cited by 16 - V B Eradi - Full Document
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