Can anybody tell me the meaning of Loom Hours under the head Capital Gain of Income Tax Act.
Replies (2)
Guest
In todays time Loom hours is a outdated concept. It existed when Govt. used to give licences to textile industry for manufacture of fabric etc on number of hours basis. Suppose X Ltd is given 1000 hours for 10 days , X ltd used 700 hours in 10 days. The remaining hours were transferable. Since no cost was paid for acquiring this right, therefore it was called self generated assets whose COA is deemed to be nil.
CAclubindia
