Notification: S. O. 972(E)
Section(s) Referred: s. 54EA(1) ,s. 54EA(2)
Statute: INCOME TAX
Date of Issue: 13/11/1998
In exercise of the powers conferred by sub-section (1) of section 54EA of the Income-tax Act, 1961 (43 of 1961), and in supersession of the Notification S.O. 7(E), dated 5th January, 1998, published in the Gazette of India (Extraordinary) on the 5th January, 1998, the Central Board of Direct Taxes hereby specifies fully convertible debentures and bonds to be issued within a period of one year from the date of publication of the said notification for amount not exceeding rupees twenty crores and rupees two hundred fifty crores respectively by Koshika Telecom Ltd., a public company registered under the Companies Act, 1956, and having its registered office at Usha House, B-II/100, Mohan Co-op. Indl. Estate, Delhi-Mathura Road, Badarpur, New Delhi-110044, for the purposes of the said section :
Provided that the investment in the aforesaid fully convertible debentures or bonds is made by an assessee out of his income chargeable under the head “Capital gains” arising out from transfer of long-term capital asset :
Provided further that in case the assessee converts into money or transfers aforesaid fully convertible debentures or bonds allotted to him or the shares acquired on conversion, in any manner within a period of seven years from the date of their allotment, the initial investment made by such assessee in the aforesaid fully convertible debentures or bonds shall be chargeable to tax under the head “Capital gain” in accordance with the provisions of sub-section (2) of section 54EA of the Income-tax Act, 1961.
[Notification No. 10745/F. No. 178/28/97-ITA-I]