11 January 2012
1. Can a Private Limited Company sell its residential flat out of the block of its assets to its one of director at book value [ as agreed amongst the board] according to Company’s Act. Is there any procedures/ formalities to be complied with in accordance with the Company’s Law for such transaction.
2. In case of sale at book value which is lower than valuation of the said flat as per stamp duty, the section 50C of the Income Tax Act, 1961 will come to play in the said issue.
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