Central Board of Direct Taxes specifies fully convertible debentures and bonds issued by Koshika Telecom Ltd. u/s 54EA - S. O. 971(E) - Income Tax

Central Board of Direct Taxes specifies fully convertible debentures and bonds issued by Koshika Telecom Ltd. u/s 54EA NOTIFICATION NO. S. O. 971 ( E ) DATED 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. 6(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 one hundred two crores and one hundred twenty 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 net consideration arising out from transfer of Long-term capital asset, in accordance with the provision of section 54EA of the Income-tax Act, 1961 : 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 three 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. 10744/F. No. 178/28/97-ITA-I]