Right to subscribe for shares arises only when right offer is made by the company: SC

RELEVANT EXTRACT

The assessee held shares in Jindal Iron and Steel Co. Pursuant to a rights issue of partly convertible debentures announced by Jindal, the assessee received an offer to subscribe to 1875 PCDs on Rights Basis. The assessee renounced his right to subscribe to PCDs and received a consideration of Rs. 56,250/- for the renunciation.

Against the said sale consideration, the assessee claimed on the basis of D

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