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Capital Gains.... Transfer

Nicky (Chartered Accountant) (245 Points)

29 March 2010

THE SITUATION:

Mr. A has been holding a piece of Land (urban) for over 10 years and now he enters into a Principal to principal agreement (it is almost similar to JV) with a construction company for development of the stated land...

The sale consideration has been decided for the piece of land at 30% of gross sale proceeds,

In the given case he has converted his capital asset into stock-in-trade.

It is a project envisaged to be completed over 3 years comprising of say 100 Flats

THE QUESTIONS ARE:

a) How to tax the transaction in the hands of Mr. A?

b) Are we suppose to offer the entire receipt of sale proceeds in the hands of Mr. A as capital gains or we need some of it to be Business ?

I have a solution in mind but want to know whether I my opinion matches with the people on this forum..

Thank you for sparing your valuable time.

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7 Replies

Amir (Learner) (4016 Points)
Replied 29 March 2010

Dear Sir,

I think by saying that u have an answer in mind, u have indirectly warned us to be double sure while posting our replies.....:)

Anyway Jokes apart, coming back to question -

Facts which I could undertsnd - PLz correct me If u meant something else -

Mr. A holding a Land as a Capital Asset since 10 years. Now he converts this Land into Stock in trade. After that he enters in to an agreement with the construction company to build falts on it and dispose off...Consideration of Land is aggred at 30% of the total revenue from the sale of 100 Flats (expected to be realized in 3 years from now).

I think Tax Treatment In the hands of A will be as follows -

Sec 45(2) shall be attracted on conversion of Land into SIT and Capital Gains would be computed based on FMV on the date of conversion. Capital Gains will be charged to tax in the year in which SIT is sold.

Now this case raises some questions on which Law is not clear -

a) What will happen if all the flats are not disposed off in single year. Can the above gain be charged to tax in parts? I dont think it can be charged to tax in parts.

b) Can Sec 50C apply in case the FMV is less then Value determineded by the Stamp Valuation Authority? For me Sec 50 C cannot apply in this case..even if we assume that Sec 50 C can apply then also its practical affect would NOT be much since assessee has the option to take benefit of subsection (2) of Sec 50C.

c) Can the above LTCG be claimed exempt under Sec 54 EC and/or 54F? It cannot be claimed exempt under those sections since the perod of limitation under these sections is to be reckoned from the date of Tranfer of asset and not from the year of taxability,

Further 30% of the total consideration which A will be receiving as reduced by the Sale condideration which have been considered for computing Capital Gains will be charged to Tax as Business Income.

Nicky (Chartered Accountant) (245 Points)
Replied 30 March 2010

Uday Kiran:

It is a Joint Venture kind of agreement not exactly Joint venture, which entails A to make land available for development

Aamir

Interpretation of your facts is correct

Questions of law:

a) Yes it cam be charged in parts the method is as follows 1) Divide the land cost over the saleable area of the project and subsequently as the area is ebing transferred tax gains accordingly..

b) FMV can be obtained by either stamp duty valuation but to be doubly sure we need to take government valuer's certificate the maximum of two to be brought to tax.

c) 54EC can be claimed read circular no. 791 dated 2-6-2000.

See it is not that I have studied all and asking a question, I am fresh CA into practise so want to be doubly sure before I give an opnion...

2 Like

Amir (Learner) (4016 Points)
Replied 30 March 2010

Thanks Sir,

I didnt know about that circular . Yes Sec 54EC can be claimed but I thnk that Circular is silent about Sec 54F...

Actualy I couldnt find the complete text of that circular so would really appreciate if u can post its complete text here....

Nicky (Chartered Accountant) (245 Points)
Replied 30 March 2010

Uday I am answering out of the way ...

I have replied to Amir on ur question and you are contradicting his claim but you are correct

Dhawal Mohnot (Practicing) (449 Points)
Replied 31 March 2010

Good value addition . Thanks to all.

Nicky (Chartered Accountant) (245 Points)
Replied 31 March 2010

THE TEXT OF THE CIRCULAR

Section 54EA/54EB

Exemption of capital gains on transfer of long term capital assets in specified cases

n The Board have framed the following guidelines for approving investment instruments for the purposes of sections 54EA and 54EB :

1. Applications to be sent by public companies and public financial institutions to the CBDT for notifying investment instruments.

2. Mutual funds referred to in section 10(23D), including UTI, need not make applications for this purpose.

3. Sixty per cent of capital (hereinafter called investible capital) raised through bonds or debentures shall be invested in infrastructure facilities as defined in section 80-IA(12), or in companies generating power or generating and distributing power, or in companies engaged in basic telephone services, or in the exploration/extraction of oil and natural gases.

4. 25 per cent or more of the investible capital shall be invested in the infrastructure facility specified in section 80-I(12) before the end of one year from the date of approval by the Board.

5. The balance of investible capital shall be invested within a period of three years from the date of approval by the Board.

6. Every public company or public financial institution shall submit a certificate from an Accountant, as defined in the Explanation to section 288(2), specifying the amount invested in each year, from the date of approval by the Board.

7. The Board shall have the power to withdraw the approval granted in the following circumstances :

- if such public company or public financial institution fail to make investments as per conditions mentioned at (4) and (5) above;

- if such public company or public financial institution fails to file the certificate from the Accountant as mentioned at (6) above - Circular No. 748, dated 19-12-1996

Aforesaid guidelines will also apply to shares issued by public companies with regard to procedure for making applications to the Board as well as with regard to manner of utilisation of investible capital - Circular No. 750, dated 13-1-1997.

n Date of transfer is the date on which the stock-in-trade is sold or otherwise transferred by the assessee - Sections 54EA, 54EB and 54EC provides deduction from long-term capital gain if the sale proceeds/long-term capital gain is invested in specified assets within a period of 6 months from the date of transfer. It is not possible for an assessee to make the required investment under the aforesaid sections at the point of conversion of capital asset into stock-in-trade because the right to collect sales consideration in such cases arises only at the point of sale or transfer otherwise of stock-in-trade. Thus, the period of 6 months for making investments in specified assets for the purpose of sections 54EA, 54EB and 54EC should be taken from the date such stock-in-trade is sold or otherwise transferred, in terms of section 45(2) of the Act - Circular No. 791, dated 2-6-2000.

n Clarification regarding transfer of long-term capital assets beyond 31-3-2000 - The amendment vide the Finance Act, 2000, in regard to sections 54EA and 54EB is to restrict the operation of these two sections to transfers effected on or before March 31, 2000. These sections, otherwise, allow investment of capital gains arising out of transfer of long-term capital asset within a period of six months from the date of transfer, in specified securities. The Finance Act, 2000, has not made any change in this regard. Therefore, the investment in specified securities can be made beyond 31st March, 2000, in respect of transfers effected on or before 31-3-2000 as long as the same is made within six months from the date of transfer. - PIB Press Release, dated 13-4-2000.

n Bonds, debentures and units specified for the purposes of section 54EA,

1. All bonds, redeemable after a period of three years, issued or to be issued by the housing the Urban Development Corporation Limited, New Delhi; and

2. All units, repurchasable after a period of three years, issued or to be issued by any mutual fund (including the Unit Trust of India) referred to in clause (23D) of section 10 of the Income-tax Act, 1961.—Notification No. 10248 [F. No. 142/58/96-TPL], dated 19-12-1996.

3. All bonds, redeemable after a period of three years of :—

(i) the Industrial Credit and Investment Corporation of India Limited, Mumbai;

(ii) the Sardar Sarovar Narmada Nigam Limited, Gandhinagar;

(iii) the DMCC Oil Terminals (Navlakhi), Limited, Mumbai;

(iv) the Industrial Reconstruction Bank of India, Calcutta; and

4. Equity shares not transferable before a period of three years of the DMCC Oil Terminals (Navlakhi) Limited, Mumbai.—Notification SO 164(E), dated 4-3-1997, as amended by, Notification SO 251(E), dated 27-3-1997.

5. All bonds, redeemable after a period of three years of—

(i) the Industrial Development Bank of India, Mumbai;

(ii) the Nuclear Power Corporation of India Limited, Mumbai;

(iii) the National Highways Authority of India, New Delhi;

(iv) the National Housing Bank, New Delhi;

(v) the Power Finance Corporation, New Delhi;

(vi) the Tecil Chemicals and Hydro Power Limited, Mumbai ; and

6. Non-convertible debentures redeemable after a period of three years of the Ahmedabad Electricity Company Ltd., Ahmedabad.—Notification SO 77(E), dated 3-2-1997.

7. All bonds, redeemable after a period of three years of :—

(i) the Weizmann Limited, Mumbai;

(ii) the CRB Corporation Limited, New Delhi;

(iii) the Madhya Pradesh Electricity Board (MPEB), Jabalpur and

8. Equity shares amounting to Rs. 72 crores issued by DMCC Oil Terminals (Navlakhi) Ltd. held for a period of at least three years.—Notification SO 251(E), dated 27-3-1997.

9. Following shares and debentures—

(i) shares to be issued by Reliance Utilities and Power Limited not exceeding Rs. 415 crores transferable or convertible after three years;

(ii) debentures to be issued by Reliance Utilities and Power Limited not exceeding Rs. 770 crores transferable or convertible after three years.—Notification No. SO 673(E), dated 25-9-1997.

10. Following shares and debentures—

(i) shares to be issued by Reliance Ports and Terminals Limited not exceeding Rs. 295 crores transferable or convertible after three years;

(ii) debenture to be issued by Reliance Ports and Terminal Limited not exceeding Rs. 200 crores transferable or convertible after three years.—Notification No. SO 672(E), dated 25-9-1997.

10A. Following shares and debentures—

(i) shares to be issued by M/s. Shapoorji Pallonji Infrastructure Capital Company Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at 70, Nagindas Master Road, Fort, Bombay - 400 023, of an amount not exceeding Rs. 150 crores, which are not transferable before 3 years from the date of its allotment : Provided that shares are issued and allotted to the assessee within one year from the date of the issue of this notification; and

(ii) debentures to be issued by M/s. Shapoorji Pallonji Infrastructure Capital Company Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at 70, Nagindas Master Road, Fort, Bombay - 400 023, of an amount not exceeding Rs. 300 crores, which are not transferable or convertible before 3 years from the date of its allotment : Provided that debentures are issued and allotted to the assessee within one year from the date of issue of this notification - Notification No. SO 910(E), dated 26-12-1997.

11. Shares to be issued within a period of one year from the date of publication of this notification by Apollo Infrastructure Projects Finance Co. Ltd., not exceeding Rs. 120 crores transferable after three years.—Notification No. SO 5(E), dated 2-1-1998, as amended by, Notification No. SO 66(E), dated 18-1-1998.

12. Equity shares to be issued within a period of one year from the date of publication of this notification by Techno Telecom (India) Ltd. not exceeding Rs. 40 crores transferable after three years.—Notification No. 10492 [F.No. 178/33/97-IT(A-I)], dated 2-1-1998.

13. Following shares and debentures—

(i) debentures to be issued within a period of one year from the date of publication of this notification by Koshika Telecom Limited not exceeding Rs. 102 crores transferable or convertible after three years;

(ii) bonds to be issued within a period of one year from the date of publication of this notification by Koshika Telecom Limited not exceeding Rs. 120 crores transferable or convertible after three years.—Notification No. 10495 [F.No. 178/28/97-IT(A-I)], dated 5-1-1998.

14. Shares to be issued by Tata Petrodyne Limited a public company registered under the Indian Companies Act, 1956 and having its registered office at Jeevan Bharti, Tower No. 1, 10th Floor, 124, Connaught Circus, New Delhi-110 001 within one year from the date of publication of this notification, of an amount not exceeding Rs. 69 crores, which are not transferable before three years after its allotment.—Notification No. SO 9(E), dated 5-1-1998.

15. Following shares and debentures—

(i) shares to be issued within a period of one year from the date of publication of this notification by Ushdev International Ltd., Mumbai not exceeding Rs. 2 crores transferable after three years;

(ii) debentures to be issued within a period of one year from the date of publication of this notification by Ushdev International Ltd., Mumbai not exceeding Rs. 10.04 crores transferable or convertible after three years.—Notification No. SO 10(E), dated 5-1-1998.

16. Bonds to be issued by Alpic Finance Limited, a public company registered under the Indian Companies Act, 1956 and having its registered office at 6th Floor, New Excelsior Building, Wallace Street, Fort, Mumbai-400 001, of an amount not exceeding Rs. 37.50 crores, which are not transferable before 3 years from the date of its allotment—Notification No. SO 101(E), dated 4-2-1998.

17. Shares to be issued within a period of one year from the date of publication of this notification in the Official Gazette of an amount not exceeding Rs. 110 crores by Infrastructure Development Finance Company Limited, a public company registered under the Indian Companies Act, 1956 and having its registered office at c/o HDFC Limited, ITC Centre, 2nd Floor, 760, Anna Salai, Chennai-600 002 - Notification No. SO 275(E), dated 6-4-1998.

18. Following shares and debentures—

(a) shares to be issued by Reliance Patalganga Power Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Shree Ram Mills premises, 3rd Floor, Ganpat Rao Kadam Marg, Worli, Mumbai, within one year from the date of publication of this notification, of an amount not exceeding Rs. 462.39 crores which are not transferable before three years after their allotment, and

(b) debentures to be issued by Reliance Patalganga Power Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Shree Ram Mills premises, 3rd Floor, Ganpat Rao Kadam Marg, Worli, Mumbai within one year from the date of publication of this notification, of an amount not exceeding Rs. 1078.91 crores which are not transferable or convertible before three years after their allotment.—Notification No. SO 444(E), dated 21-5-1998.

19. Bonds to be issued by Wind Energy System Care (India) Ltd., Chennai, a public company registered under the Indian Companies Act, 1956 and having its registered office at Rani Arcade, 24, 1st Avenue, Ashok Nagar, Chennai-600 083, within one year from the date of publication of this notification, of an amount not exceeding Rs. 45 crores which are not transferable before three years after their allotment.—Notification No. SO 469(E), dated 27-5-1998.

20. Equity to be issued within a period of one year from the date of publication of this notification in the Official Gazette, of an amount not exceeding Rs. 1524.3 crores by Reliance Telecom Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellisbridge, Ahmedabad-380 006; and

Debentures to be issued within a period of one year from the date of publication of this notification in the Official Gazette of an amount not exceeding Rs. 762.2 crores by Reliance Telecom Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellisbridge, Ahmedabad-380 006.—Notification No. SO 468(E), dated 27-5-1998.

21. Equity to be issued within a period, of one year from the date of publication of this notification in the Official Gazette of an amount not exceeding Rs. 913 crores by Reliance Power Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Advesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis bridge, Ahmedabad-380 006; and

Bonds to be issued within a period of one year from the date of publication of this notification in the Official Gazette of an amount not exceeding Rs. 2132 crores by Reliance Power Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis bridge, Ahmedabad - 380 006.—Notification No. SO 467(E), dated 27-5-1998.

22. Shares to be issued by Energy Development Co. Ltd., Bangalore, a public company registered under the Indian Companies Act, 1956 and having its registered office at 21D, Ist Cross, Ist Floor, Jayalakshmi Puram, Mysore, within one year from the date of publication of this notification, of an amount not exceeding rupees eight crores twenty lakhs only which are not transferable before three years after their allotment.—Notification No. 584(E), dated 13-7-1998.

23. Preference shares to be issued within a period of one year from the date of publication of this notification in the Official Gazette of an amount not exceeding Rs. 50 lacs by M/s. Tecil Chemicals and Hydro Power Limited, a public company registered under the Companies Act, 1956 and having its registered office at P.O. Chingavanam, Distt. Kottayam (Kerala), Pin. 686 531.—Notification No. 745(E), dated 1-9-1998.

24. Equity shares to be issued within a period of one year from the date of publication of this notification in the Official Gazette, of an amount not exceeding three hundred crores only by the Tata Teleservices Limited, a public company registered under the Companies Act, 1956 (1 of 1956) and having its registered office at Jeevan Bharti, Connaught Circus, New Delhi - 110 001.—Notification No. 10688 [F. No. 178/7/98-IT(A-I)], dated 7-9-1998.

25. Bonds to be issued within a period of one year from the date of publication of this notification in the Official Gazette of an amount not exceeding Rs. 35 crores by M/s. Weizmann Limited, a public company registered under the Companies Act, 1956 and having its registered office at Empire House, 214 Dr. D.N. Road, Ent. A.K. Nayak Marg, Port, Mumbai.—Notification No. SO 824(E), dated 17-9-1998, as corrected by Notification No. SO 1088(E), dated 6-8-1999.

26. 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 M/s. Koshika Telecom Limited, 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 - 110 044.—Notification No. SO. 971(E), dated 13-11-1998.

27. (a) The Fully Convertible Debentures (FCDs) for an aggregate amount not exceeding twenty five crore rupees only;

(b) the Deep Discount Bonds (DDBs) for an aggregate amount of forty crore rupees only,

to be issued, within a period of one year from the date of publication of this Notification in the Official Gazette of India, by the Noida Toll Bridge Company Limited, a public limited company registered under the Companies Act, 1956 (1 of 1956) and having its registered office at Philibhit House, 6, Shahnajaf Road, Lucknow - 226001.—Notification No. SO 544(E), dated 6-7-1999.

28. Equity shares to be issued within a period of one year from the date of publication of this notification in the Official Gazette for amounts not exceeding rupees sixty-six crores by M/s. Reliance Ports & Terminals Limited, a public limited company registered under the Companies Act, 1956 and having its registered office at Village Meghpar, Taluka Lalpar, District - Jamnagar, Gujarat - 361140.—Notification No. SO 632(E), dated 6-8-1999.

29. Equity shares to be issued within a period of one year from date of publication of this notification in the Official Gazette of an amount not exceeding three hundred crores only by the Tata Tele Services Limited, a public company registered under the Companies Act, 1956 (1 of 1956) and having its registered office at Jeevan Bharti, Connaught Circus, New Delhi - 110001.—Notification No. 11104 [F. No. 178/66/99-IT(A-I)], dated 7-10-1999.

30. Equity shares and debentures or bonds to be issued within a period of one year from date of publication of this Notification in the Official Gazette for an amount not exceeding rupees two hundred sixty-two crores and three hundred sixty-nine crores respectively by M/s. Bharati Telenet Limited, a Public Limited Company registered under the Companies Act, 1956 and having its registered office at Qutab Ambience, H-5/12, Mehrauli Road, New Delhi-110030.—Notification No. 11147 [F. No. 178/86/98-IT (A-I)], dated 26-11-1999.

31. (a) Equity to be issued within a period of one year from the date of publication of this Notification in the Official Gazette, of an amount not exceeding Rs. 1,524.3 crores by M/s. Reliance Telecom Ltd., a public company registered under the Indian Companies Act, 1956, and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis Bridge, Ahmedabad - 380006; and

(b) Debentures to be issued within a period of one year from the date of publication of this Notification in the Official Gazette of an amount not exceeding Rs. 762.2 crores by M/s. Reliance Telecom Ltd., a public company registered under the Indian Companies Act, 1956, having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis Bridge Ahmedabad - 380006.—Notification No. 11151 [F. No. 178/55/99-IT (A-I)], dated 30-11-1999.

32. (a) Shares to be issued by Reliance Patalganga Power Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Shree Ram Mills Premises, 3rd Floor, Ganpat Rao Kadam Marg, Worli, Mumbai, within one year from the date of publication of this Notification, of an amount not exceeding Rs. 462.39 crores which are not transferable before three years after their allotment; and

(b) Debentures to be issued by M/s. Reliance Patalganga Power Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Shree Ram Mills Premises, 3rd Floor, Ganpat Rao Kadam Marg, Worli, Mumbai, within one year from the date of publication of this Notification, of an amount not exceeding Rs. 1,078.91 crores which are not transferable as convertible before three years after their allotment.—Notification No. 11152 [F. No. 178/56/99-IT (A-I)], dated 30-11-1999.

33. (a) Equity to be issued within a period of one year from the date of publication of this Notification in the Official Gazette, of an amount not exceeding Rupees nine hundred thirteen crores by M/s. Reliance Power Limited, a public company registered under the Indian Companies Act, 1956 and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis Bridge, Ahmedabad-380 006; and

(b) bonds to be issued within a period of one year from the date of publication of this Notification in the Official Gazette of an amount not exceeding Rupees two thousand one hundred thirty two crores by M/s. Reliance Power Limited, a public company registered under the Indian Companies Act, 1956 and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis Bridge, Ahmedabad - 380 006 - Notification No. SO 1220(E), dated 7-12-1999.

34. Shares to be issued by Shalivahana Power Corporation Limited, a public company registered under the Indian Companies Act, 1956 and having its registered office at Minerva House, 94, Sarojini Devi Road, Secundrabad, within one year from the date of publication of this Notification, of an amount not exceeding rupees fourteen crores eighty lakhs - Notification No. SO 1229(E), dated 9-12-1999.

35. Equity shares and preference shares to be issued within a period of one year from date of publication of this Notification in the Official Gazette, for an amount not exceeding rupees twenty eight crores each respectively by M/s. Reliance Salgaocar Power Company Ltd., a company registered under the Companies Act, 1956 and having its registered office at 4th Floor, Dempo Trade Centre, EDC Complex, Patto Plaza, Panaji - 403 001 - Notification No. SO 1230(E), dated 9-12-1999.

36. (a) Equity shares to be issued within a period of one year from the date of publication of the Notification No. 11151, dated 30-11-1999 in the Official Gazette, of an amount not exceeding rupees 774.3 crores by M/s. Reliance Telecom Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis Bridge, Ahmedabad - 380 006;

(b) preference shares to be issued within a period of one year from the date of publication of the Notification No. 11151, dated 30-11-1999 in the Official Gazette, of an amount not exceeding rupees 750 crores by M/s. Reliance Telecom Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis Bridge, Ahmedabad; and

(c) debentures to be issued within a period of one year from the date of publication of the Notification No. 11151, dated 30-11-1999 in the Official Gazette, of an amount not exceeding rupees 762.2 crores by M/s. Reliance Telecom Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellis Bridge, Ahmedabad - Notification No. SO 258(E), dated 22-3-2000.

37. Equity shares to be issued by Adani Infrastructure Services Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Adani House, Shrimali Society, Near Mithakhali Six Road, Navrangpura, Ahmedabad, within three years for the date of publication of this notification, of an amount not exceeding rupees 120 (one hundred twenty) crores which are not transferable before three years after allotment.—Notification No. SO 259(E), dated 22-3-2000.

38. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette of an amount not exceeding rupees 30 (thirty) crores by M/s Kirloskar Power Supply Company Ltd., Pune having its registered office at Laxmanrao Kirloskar Road, Khadki, Pune - 411003.—Notification No. SO 269(E), dated 23-3-2000.

39. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 100 (hundred) crores by M/s Information Technology Park Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Whitefield Road, Bangalore - 560 066.—Notification No. SO 271(E), dated 23-3-2000.

40. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 110 (hundred & ten) crores by M/s. Konaseema EPS Oakwell Power Ltd., a Public Ltd. Company having its registered office at 4th Floor, Progressive Towers, Khairatabad, Hyderabad - Notification No. 11285 [F. No. 178/101/99-IT(A-I)], dated 28-3-2000.

41. Bonds to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 50 (fifty) crores by M/s. Infrastructure Leasing & Financial Services Limited having its registered office at Mahindra Towers, 4th Floor, Dr. G.M. Bhosale Marg, Worli, Mumbai - Notification No. SO 279(E), dated 28-3-2000.

42. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 100 (hundred) crores by M/s. Adani Port Infrastructure Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Adani House - Near Mithakhali Six Road, Navrangpura, Ahmedabad-380009 - Notification No. 11289 [F. No. 178/8/2000-IT(A-I)], dated 28-3-2000.

43. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 90 (ninety) crores by M/s. Koshika Holdings Ltd., a public limited company having its registered office at Usha House, B-II/100, M.C.I.E. Sher Shah Suri Marg, Badarpur, New Delhi-110044 - Notification No. 11310 [F.No. 178/26/98-IT(A-I)], dated 30-3-2000.

44. (i) Equity and preference shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 100 (hundred) crores by M/s. Shapoorji Pallonji Power Company Ltd. having its registered office at 70, Nagindas Master Road, Fort, Bombay-400023.

(ii) bonds and debentures to be issued within a period of one year from the date of publication of the notification in the Official Gazette of an amount not exceeding rupees 235 crores by M/s. Shapoorji Pallonji Power Company Ltd. having its registered office at 70, Nagindas Master Road, Fort, Bombay-400023 - Notification No. SO 313(E), dated 30-3-2000.

45. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 43.20 crores by M/s. DC Power Ltd., Hyderabad, a Public Ltd. Company having its registered office at 3-6-356/358, Basheer Bagh, Hyderabad - 500029 - Notification No. 11314 [F. No. 178/50/98-IT(A-I)], dated 31-3-2000.

n The following assets, referred to as the long-term specified assets, are specified for the purposes of section 54EB :

1. Deposits for a period of not less than seven years with the State Bank of India, or any of its subsidiaries, or any nationalised bank, or any co-operative bank (including a co-operative land mortgage bank or co-operative land development bank);

2. All bonds, redeemable after a period of seven years, issued or to be issued by the Housing and Urban Development Corporation Ltd., New Delhi (HUDCO); and

3. All units, repurchasable after a period of seven years, issued or to be issued by any mutual fund (including UTI) referred to in section 10(23D).—Notification : No. SO 882(E), dated 19-12-1996.

4. All bonds, redeemable after a period of seven years of :

(i) the Industrial Development Bank of India, Mumbai;

(ii) the Nuclear Power Corporation of India Limited, Mumbai;

(iii) the National Highways Authority of India, New Delhi;

(iv) the National Housing Bank, New Delhi;

(v) the Power Finance Corporation, New Delhi; and

5. Deposits for a period of not less than seven years with,

(a) the Housing and Urban Development Corporation Limited, New Delhi;

(b) the Industrial Development Bank of India (IDBI), Mumbai.—Notification SO 78(E), dated 3-2-1997.

6. All bonds, redeemable after a period of seven years of :—

(i) the Industrial Credit and Investment Corporation of India Limited, Mumbai;

(ii) the Sardar Sarovar Narmada Nigam Limited, Gandhinagar;

(iii) the DMCC Oil Terminals (Navlakhi) Limited, Mumbai;

(iv) the Industrial Reconstruction Bank of India, Calcutta; and

7. Deposits for a period of not less than seven years with,—

(a) the Housing Development Finance Corporation Limited, Mumbai;

(b) the Industrial Reconstruction Bank of India, Calcutta;

(c) the ICICI Banking Corporation Limited, Mumbai.—Notification No. SO 163(E), dated 4-3-1997, as amended by, Notification SO 252(E), dated 27-3-1997.

8. All bonds, redeemable after a period of seven years of the Madhya Pradesh Electricity Board (MPEB), Jabalpur and

9. Equity shares amounting to Rs. 72 crores issued by DMCC Oil Terminals (Navlakhi) Ltd. held for a period of at least seven years.—Notification SO 252(E), dated 27-3-1997.

10. Debentures to be issued by Reliance Utilities and Power Limited not exceeding Rs. 200 crores transferable or convertible after seven years.—Notification No. SO 674(E), dated 25-9-1997.

11. Debentures to be issued by Reliance Ports and Terminals Limited not exceeding Rs. 100 crores transferable or convertible after seven years.—Notification No. SO 671(E), dated 25-9-1997.

11A. Following shares and debentures :

(i) shares to be issued by M/s. Shapoorji Pallonji Infrastructure Capital Company Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at 70, Nagindas Master Road, Fort, Bombay - 400 023, of an amount not exceeding Rs. 50 crores, which are not transferable before 7 years from the date of its allotment : Provided that shares are issued and allotted to the assessee within one year from the date of the publication of this notification; and

(ii) debentures to be issued by M/s. Shapoorji Pallonji Infrastructure Capital Company Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at 70, Nagindas Master Road, Fort, Bombay - 400 023, of an amount not exceeding Rs. 100 crores, which are not transferable or convertible before 7 years from the date of its allotment : Provided that debentures are issued and allotted to the assessee within one year from the date of the publication of this notification.—Notification No. SO 909(E), dated 26-12-1997.

12. Equity shares to be issued within a period of one year from the date of publication of this notification by Techno Telecom (India) Ltd. not exceeding Rs. 10 crores transferable after seven years.—Notification No. SO 783(E), dated 2-1-1998.

13. Debentures to be issued within a period of one year from the date of publication of this notification by Koshika Telecom Limited not exceeding Rs. 20 crores transferable or convertible after seven years; and

14. Bonds to be issued within a period of one year from the date of publication of this notification by M/s. Koshika Telecom Limited not exceeding Rs. 250 crores transferable or convertible after seven years.—Notification No. 10496 [F.No. 178/28/97-IT(A-I)], dated 5-1-1998.

15. Shares to be issued by Tata Petrodyne Limited, a public company registered under the Indian Companies Act, 1956 and having its registered office at Jeevan Bharti, Tower No. 1, 10th Floor, 124, Connaught Circus, New Delhi - 110 001 within one year from the date of publication of this notification, of an amount not exceeding Rs. 70 crores which are not transferable before 7 years after its allotment.—Notification No. SO 8(E), dated 5-1-1998.

16. Shares to be issued within a period of one year from the date of publication of this notification by Ushdev International Ltd., Mumbai not exceeding Rs. 5.09 cores transferable after seven years; and

Debentures to be issued within a period of one year from the date of publication of this notification by Ushdev International Ltd., Mumbai not exceeding Rs. 30.12 crores transferable or convertible after seven years.—Notification No. SO 11(E), dated 5-1-1998.

17. Bonds to be issued by Alpic Finance Limited, a public company registered under the Indian Companies Act, 1956 and having its registered office at 6th Floor, New Excelsior, Building, Wallace Street, Fort, Mumbai - 400 001, of an amount not exceeding Rs. 37.50 crores, which are not transferable before 7 years from the date of its allotment.—Notification No. SO 100(E), dated 4-2-1998.

18. Shares to be issued within a period of one year from the date of publication of this notification in the Official Gazette of an amount not exceeding Rs. 110 crores by Infrastructure Development Finance Company Limited, a public company registered under the Indian Companies Act, 1956 and having its registered office at c/o HDFC Limited, ITC Centre, 2nd Floor, 760, Anna Salai, Chennai - 600 002.—Notification No. SO 274(E), dated 1-4-1998.

19. Bonds to be issued by Wind Energy System Care (India) Ltd. Chennai, a public company registered under the Indian Companies Act, 1956 and having its registered office at Rani Arcade, 24, 1st Avenue, Ashok Nagar, Chennai - 600 083, within one year from the date of publication of this notification, of an amount not exceeding Rs. 45 crores which are not transferable before seven years after their allotment.—Notification No. SO 470(E), dated 27-5-1998.

20. Shares to be issued by the Energy Development Co. Ltd., Bangalore, a public company registered under the Indian Companies Act, 1956 and having its registered office at 21D, 1st Cross, 1st Floor, Jayalakshmi Puram, Mysore, within one year from the date of publication of this notification, of an amount not exceeding rupees one crores sixty lakhs only which are not transferable before seven years after their allotment.—Notification No. 585(E), dated 13-7-1998.

21. Equity shares, to be issued within a period of one year from the date of publication of this notification in the Official Gazette, of an amount not exceeding one hundred fifty crores only by the Tata Teleservices Limited, a public company registered under the Companies Act, 1956 (1 of 1956) and having its registered office at Jeevan Bharti, Connaught Circus, New Delhi - 110 001.—Notification No. 10689 [F. No. 178/7/98-IT(A-I)], dated 7-9-1998.

22. Fully Convertible Debentures and Bonds to be issued within a period of one year from date of publication on the said notification for amount not exceeding Rs. Twenty crores andRs. Two hundred fifty crores respectively by the Koshika Telecom Limited 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-110 044, for the purposes of the said section.—Notification No. SO 972(E), dated 13-11-1998.

23. (i) Deposits for a period of not less than seven years with the State Bank of India established under the State Bank of India Act, 1955 (23 of 1955), or any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), or any nationalised bank, that is to say, any corresponding new bank, constituted under section 3 of the Banking Companies (Acquisition and Transfer of Under-takings) Act, 1970 (5 of 1970) or under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 or any cooperative society engaged in carrying on the business of banking including a cooperative land mortgage bank or cooperative land development bank;

(ii) all bonds, redeemable after a period of seven years, issued or to be issued by the Housing Urban Development Corporation Limited, New Delhi;

(iii) all units, repurchasable after a period of seven years, issued or to be issued by any mutual fund including the Unit Trust of India referred to in clause (23D) of section 10 of the Income-tax Act, 1961—Notification No. SO 181(E), dated 23-3-1999.

24. (a) The Fully Convertible Debentures (FCDs) for an aggregate amount not exceeding twenty- five crores rupees only;

(b) the Deep Discount Bonds (DDBs) for an aggregate amount of ten crore rupees only,

to be issued, within a period of one year from the date of publication of this notification in the Official Gazette of India, by the Noida Toll Bridge Company Limited, a public limited company registered under the Companies Act, 1956 and having its registered office at Philibhit House, 6, Shahnajaf Road, Lucknow - 226001 - Notification No. SO 545(E), dated 6-7-1999.

25. Fully convertible debentures and bonds to be issued within a period of one year from the date of publication of the said notification dated the 13th November, 1998 for an amount not exceeding rupees twenty crores and rupees two hundred and fifty crores respectively by M/s. Koshika Telecom Limited, a public limited company registered under the Companies Act, 1956 and having its registered office at Usha House, B-II/100, Mohan Cooperative Industrial Estate, Delhi Mathura Road, Badarpur, New Delhi - 110044 - Notification No. SO 674(E), dated 20-8-1999.

26. Equity shares to be issued within a period of one year from date of publication of this Notification in the Official Gazette, of an amount not exceeding one hundred fifty crores only by the Tata Teleservices Limited, a public company registered under the Companies Act, 1956 (1 of 1956) and having its registered office at Jeevan Bharti, Connaught Circus, New Delhi - 110001 - Notification No. 11105[F. No. 178/66/99-IT (A-I)], dated 7-10-1999.

27. Equity shares and debentures or bonds to be issued within a period of one year from date of publication of this Notification in the Official Gazette for an amount not exceeding rupees one hundred seventy-five crores and two hundred forty-six crores respectively by M/s. Bharati Telenet Limited, a Public Limited Company registered under the Companies Act, 1956 (1 of 1956) and having its registered office at Qutab Ambience, H-5/12, Mehrauli Road, New Delhi-110030 - Notification No. 11148 [F.No. 178/86/98-IT (A-I)], dated 26-11-1999.

28. Equity shares as long-term specified securities for the purposes of the said section, equity shares to be issued within a period of one year and equity shares to be issued within a period of two years from the date of publication of this Notification in the Official Gazette, for an amount not exceeding rupees four hundred crores and four hundred six crores respectively by M/s. ASC Enterprises Limited, a public limited company registered under the Companies Act, 1956 and having its registered office at Ajanta Business Centre 8, Juhu Tara Road, Mumbai-400 049 - Notification No. SO 1227(E), dated 9-12-1999.

29. Equity shares as long-term specified securities for the purposes of the said section, equity shares to be issued within a period of one year and equity shares to be issued within a period of two years from the date of publication of this Notification in the Official Gazette, for an amount not exceeding rupees four hundred crores and four hundred six crores respectively by M/s. ASC Enterprises Limited, a public limited company registered under the Companies Act, 1956 and having its registered office at Ajanta Business Centre 8, Juhu Tara Road, Mumbai-400 049 - Notification No. SO 1228(E), dated 9-12-1999.

30. Debentures to be issued by Adani Infrastructure services Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Adani House, Shrimali Society, Near Mithakhali Six Road, Navrangpura, Ahmedabad, within seven years from the date of publication of this notification, of an amount not exceeding rupees 30 (thirty) crores which are not transferable before seven years after allotment.—Notification No. SO 260(E), dated 22-3-2000.

31. Bonds to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 30 (thirty) crores by M/s Kirloskar Power Supply Company Ltd. a public company registered under the Indian Companies Act, 1956 and having its registered office at Laxmanrao Kirloskar Road, Khadki, Pune - 411 003.—Notification No. SO 270(E), dated 23-3-2000.

32. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 100 (hundred) crores by M/s. Information Technology Park Ltd., a public company registered under the Indian Companies, Act, 1956 and having its registered office at Whitefield Road, Bangalore - 560 066.—Notification No. SO 272(E), dated 23-3-2000.

33. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 130 (hundred thirty) crores by M/s. Konaseema EPS Oakwell Power Ltd., is a public limited company, having its registered office at 4th Floor, Progressive Towers, Khairatabad, Hyderabad - Notification No. 11286 [F. No. 178/101/99-IT(A-I)], dated 28-3-2000.

34. Bonds to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 50 (fifty) crores by M/s. Infrastructure Leasing & Financial Services Limited having its registered office at Mahindra Towers, 4th Floor, Dr. G.M. Bhosale Marg, Worli, Mumbai - Notification No. SO 280(E), dated 28-3-2000.

35. Debentures to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 15 (fifteen) crores by M/s. Adani Port Infrastructure Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at Adani House, Near Mithakhali Six Road, Navrangpura, Ahmedabad-380009 - Notification No. 11290 [F. No. 178/8/2000-IT(A-I)], dated 28-3-2000.

36. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 10 (ten) crores by M/s. Koshika Holdings Ltd., a public limited company having its registered office at Usha House, B-II/100, M.C.I.E. Sher Shah Suri Marg, Badarpur, New Delhi-110044 - Notification No. 11311 [F. No. 178/26/98-IT(A-I)], dated 30-3-2000.

37. (i) Equity and preference shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 40 (forty) crores by M/s. Shapoorji Pallonji Power Company Ltd., a public company registered under the Indian Companies Act, 1956 and having its registered office at 70, Nagindas Master Road, Fort, Bombay-400023 :

(ii) bonds and debentures to be issued within a period of one year from the date of publication of the notification in the Official Gazette of an amount not exceeding rupees 100 (hundred) crores by M/s. Shapoorji Pallonji Power Company Ltd. a public company registered under the Indian Companies Act, 1956 and having its registered office at 70, Nagindas Master Road, Fort, Bombay-400023 - Notification No. SO 314(E), dated 30-3-2000.

38. Equity shares to be issued within a period of one year from the date of publication of the notification in the Official Gazette, of an amount not exceeding rupees 43.20 crores by M/s. DC Power Ltd., having its registered office at 3-6-356/358, Basheer Bagh, Hyderabad - 500 029 - Notification No. 11315 [F. No. 178/50/98-IT(A-I)], dated 31-3-2000.