Disinvestment of holding in companies by their promoters at high premium where the companies themselves are defaulting in their liability to pay Government dues.

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..... ting in their liability to pay Government dues - regarding. The Board has observed recently that the promoters of a number of Telecom companies have disinvested their holding in such companies at a hefty premium. The companies themselves are however defaulting in the dues to the Government on various accounts such as licence fees etc. It is interesting to note that the shares of these companies f .....

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..... xamined as the same is admissible under that section only if payment is actually made. The possibility of disallowances of licence fees, whether capital or revenue u/s. 43B may also be explored, depending on facts of the case/contract terms. 3. The above instruction may be brought to the notice of all Assessing Officers in your region. F. No. 225/58/99-ITA-II (MALATHI R. SRIDHARAN) Under Secr .....

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