Section 43B: Conversion of interest into shares amounts to payment

Brief of the Case: In the case of CIT vs Rathi Graphics Technologies Ltd. Delhi High Court inter-alia held that the conversion of a portion of interest into shares should be taken to be “actual payment” within the meaning of Section 43B of the IT Act.

Facts of the Case: In respect of the Assessee, a rehabilitation scheme was sanctioned by the Board for Industrial and Financial Reconstruction (BIFR) on 1st November 2002. The scheme that was sanctioned was in fact prepared by the In

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