Law:

Section:

Section 2(28A) of the Income-tax Act, 1961 - Interest, meaning of - Assessee-company was under liquidation - A mill belonging to assessee-company was sold in a public auction for a sum of Rs. 4.49 crores - Company Court granted permission to bidder to pay Rs. 2.26 crores within six months without interest and to pay balance of Rs. 2.23 crores in 80 monthly instalments with interest - A sum of Rs. 57.89 lakhs was paid by purchaser in name of 'interest' as directed by Company Court - Whether in view of provisions of section 2(28A), to call an amount received as interest, at least one of conditions should be satisfied, namely, same should have been received as a due on account of any money either borrowed or debt incurred - Held, yes - Whether since, in instant case, amount which was agreed to be paid by way of interest as per order of Company Court, was not on account of any money either borrowed or debt incurred, same could not be treated as interest at all as defined in above provision - Held, yes Section 45, read with section 56, of the Income-tax Act, 1961 - Capital gains - Chargeable as - Whether, in view of facts stated under head 'Interest, meaning of', amount in question received by Official Liquidator as per orders of Company Court, though repeatedly referred to as interest, for purpose of assessment of income-tax, it was part of sale consideration and, therefore, said amount was to be treated only as capital gain and not income from other sources - Held, yes FACTS The assessee was a company under liquidation. It was represented by the Official Liquidator of this Court. A mill belonging to the assessee-company was ordered to be sold by the Company Court in public auction. Accordingly, it was sold in public auction for a sum of Rs. 4.49 crores. The Company Court granted permission to the bidder to pay Rs. 2.26 crores within six months without interest and to pay the balance of Rs. 2.23 crores in 80 monthly instalments with interest. Ultimately, when the entire sale consideration was paid a sale certificate was issued in favour of the purchaser. A sum of Rs. 57.89 lakhs was paid by the purchaser in the name of 'interest' as directed by the Company Court.…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492