Please reply to my following query at the earliest:
"A SICK COMPANY AFTER SO MANY YEARS OF STRUGGLE ,COULD SELL S PROPERTY (BUILDING) ONLY TO PAY OFF THE STATUTORY CREDITORS.SO THE CASE OF SHORT TERM CAPITAL GAIN ARISES.HERE I WANT TO KNOW,IS THERE ANY CASE STUDY /CIRCULAR/NOTIFICATION AVAILABLE SPECIFYING THAT CAPITAL GAIN IN SUCH CASES ARE EXEMPTED?"
13 April 2010
If a company is sick and is falling undersection 17(1) of the sick industrial act than transfer of any land by it is not covered and treated as Transfer as per the Definition of Transfer of Capital Gains. Its exempted from it. The act is not clear for the building. Try to sale the asset through the land if its possible. Provided that such transfer is made during the period commencing from the previous year in which the said company has become a sick industrial company under sub-section (1) of section 17 of that Act and ending with the previous year during which the entire net worth of such company becomes equal to or exceeds the accumulated losses.
Want a day or two to get the case studies for this as this is a good case
14 April 2010
Dear Mr. Shivang, So nice of u getting some time for this..Actually i am not sure whether it is Sick and is falling under section 17(1) of the sick industrial act or not,i ll check it.during the mean time plz get me the case studies..
CAclubindia
