Section(s) Referred: s. 54EA(1)
Statute: INCOME TAX
Date of Issue: 9/12/1999
In exercise of the powers conferred by sub-section (1) of section 54EA (hereinafter referred to the said section) of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies equity shares and preference shares as long-term specified securities for the purposes of the said section. Equity shares and preference shares to be issued within a period of one year from the date of publication of this notification in the Official Gazette, for an amount not exceeding rupees twenty-eight crores each respectively by M/s Reliance Salgaocar Power Company Limited, a company registered under the Companies Act, 1956 and having its registered office at 4th Floor, Dempo Trade Centre, EDC Complex, Patto Plaza, Panaji-403001 for the purposes of the said section :
Provided that the investment in the aforesaid equity shares and preference shares, specified in this notification is made by an assessee out of net consideration arising out from transfer of long-term capital asset in accordance with the provisions of the said section :
Provided further that in case the assessee transfers or converts (otherwise than by transfer) the aforesaid equity shares and preference shares, specified in this notification allotted to him in any manner within a period of three years from the date of their allotment, the initial investment made by such assessee in the aforesaid equity shares and preference shares shall be chargeable to tax under the head “Capital Gains” in accordance with the provisions of the said section.
[F. No. 178/82/98-ITA-I]