Laxmi Automatic Loom Works Ltd. vs Deputy Commissioner Of Income Tax … on 5 December, 2016

CORAM:
HON’BLE MR. JUSTICE S. RAVINDRA BHAT
HON’BLE MS. JUSTICE DEEPA SHARMA
MR. JUSTICE S. RAVINDRA BHAT
%
1. The issue that arises in the present Writ Petition is whether the benefit
of exemption from Capital Gains Tax can be denied to an undertaking sought
to be revived by the Board for Industrial and Financial Reconstruction
(BIFR), by giving unwarranted importance and weightage to the fact that the
Petitioner’s net worth has turned positive without considering that the
Company’s carried-over losses as on 31.03.2015 amounts to `887.23 lakhs
and the fact that it has to create Capital Redemption Reserve of `850 lakhs
out of profits for redemption of 6% cumulative redeemable preference shares
due by year 2018-19, i.e. in the three years following 2014-15.

Source: Indian Kanoon

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