income tax

This query is : Resolved

Avinash Sharma (Querist)
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05 September 2009 Dolphin Limited proposes to construct a medical unit for workers. The alternatives open are:
- To purchase a building for that purpose costing Rs. 30 lakhs to be payable in 100 equal instalments.
- To purchase the aforesaid building but instead of paying the price in instalments, an agreement would be entered into with the vendor of the building to pay him 10% of the net profits of the company for an in-definite period of time.
- To contribute Rs 30 lakhs to U.P. Government which will construct a building on land owned by it and allow the company to use it as a hospital for its workers through the ownership of the building will rest with the government. Advise the company on his viable option.