JUDGMENT

Bharucha, J.-This appeal by special leave impugns an order of the Appellate Authority for Industrial & Financial Reconstruction. The impugned order upheld the order of the Board for Industrial and Financial Reconstruction, established under the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter called the said Act), by which the benefit of the provisions of Section 72A of the Income Tax Act, 1961, was not extended to the appellant upon the amalgamation of Sharp Edge. Limited with it.

2. Notice upon this appeal was issued to the Central Board of Direct Taxes and it was duly served. It has not entered appearance.

3. Section 72A of the Income Tax Act states "that where there has been an amalgamation of a company owning an industrial undertaking with another company and the Central Government, on the recommendation of the specified authority, is satisfied that the following conditions are fulfilled, namely :-

"(a) the amalgamating company was not, immediately before such amalgamation, financially viable by reason of its liabilities, losses and other relevant factors ;

(b) the amalgamation was in the public interest ; and

(c) such other conditions as the Ce