...allowance, reduced the capital employed to the extent of Rs. 10 lakhs which represented “preference share redemption reserve” on the view that such reserve was earmarked for a known liability, namely...Addl. CIT v. Bharat Fritz Werner (P.) Ltd., [1979] 118 ITR 25, upheld the objection of the assessee to the exclusion of the amount standing to the credit of “preference share redemption reserve...Court held as under (headnote):“Preference share capital redemption reserve was created by the assessee as provided by...

.... 1,50,000 representing the ‘preference share capital redemption reserve’ as at the beginning of the relevant accounting period should be included as part of the capital base under the Second Schedule to the...Companies (Profits) Surtax Act, 1964?”2. The question referred in T.R.C No. 42 of 1974 is practically the same except that the sum representing preference share capital redemption reserve...accounting year ending July 31, 1964, the company transferred a sum of Rs. 1,50,000 from the profit and loss appropriation account to the preference share capital redemption reserve account. During the...

...preference share capital redemption account. The Income Tax Officer added back the amount to the income of the assessee on the reasoning that this amount was to be treated as revenue expenditure in view of...(1997) 3 SCC 238, (1997) 224 ITR 422 the question arising for decision was whether redemption by a company of a preference share amounts to sale of the shares by the shareholder to the company so as to be taxable for capital gains as amounting to transfer within the meaning of Section 2(47) of the Income Tax Act, 1961. Their Lordships held that such redemption amounted...Corporation, the amount set apart for redemption of preference shares to such extent as the Board of Directors of the Corporation may consider expedient shall be treated as an item of expenditure in the...

...the proceeds of the preference share issued on 11th August 1999 have been utilized between 1st March 2002 and 30th September 2002 for the purpose of redemption of 11.5 % and 10.5 % redeemable preference...is annexed as Exhibit FZ to the petition. The terms and conditions of the issue of the preference shares printed on the reverse side of the preference share certificate show that maturity period of the preference shares is 10 years from the date of allotment. On or after 30th September, 2002 the ptitioner company as well as the preference shares holder have an option of early redemption which...seeking approval and sanction of the court for redemption of series M and N preference shares and consequent reduction of the share capital by Rs.27,50,00,000/-. 9. Section 80 of the...

...the judgment under appeal. That was a case where there had been redemption of preference share capital by the company and money was paid to the shareholders. It was held therein that difference...share capital would be exigible to capital gain tax.2. The appellant had purchased 90 non-cumulative preference shares, each of the face value of Rs 1000 at a price of Rs...420 per share, of a company called Sarabhai Limited. In 1965, a sum of Rs 500 per preference share was paid off to the assessee upon a reduction of a share capital of the Company under Section 100...

...the facts and in circumstances of the case and in Law, the Ld. CIT(A) has erred in deleting an addition of Rs. 7,48,43,856/- on account of Premium on Preference Share Redemption Reserve to the Book.../- and addition of Rs. 7,48,43,856/- on account of Premium on Preference Share Redemption Reserve to the Book Profit u/s. 115JB. On appeal before the ld. CIT(A), both the addition were deleted. Aggrieved.... 5. Ground No.2 relates to deleting an addition of Rs. 7,48,43,856/- on account of Premium on Preference Share Redemption Reserve to the Book Profit u/s. 115JB. The ld. AR of the...

...right in law in holding that the sum of Rs. 8,777 transferred by the assessee to preference share redemption was to be reduced in computing the distributable income for the purpose of sections 104 and...

...of preference shares can be utilised for redemption of preference shares issued in the past. As such, the proceeds of the preference share issued on 11th August, 1999 have been utilised between 1st March, 2002 and 30th September, 2002 for the purpose of redemption of...preference shares printed on the reverse side of the preference share certificate show that maturity period of the preference shares is 10 years from the date of allotment. On or after 30th September, 2002 the petitioner company as well as the preference share holder have an option of early redemption which...29th January, 2003 to consider the redemption of series M and N preference shares. Both of preference share holders namely Hindalco Industries Limited and Excell Mines and Industries Limited, who belong to Aditya Birla Group to which the petitioner company also belongs, have also consented for the redemption of...

...at least 10,760,000 ordinary shares in BPL until full repayment of all sums owing to CDCFS under the preference share agreement and the redemption of CDCFS's preference shares in BPL...and order in the form of a writ of prohibition or otherwise against Respondents 6 to 11 implementing or acting in furtherance of the preference share agreement and/or the agreement to pledge dated 18...in Respondent 1 Company in consideration for the issuance of preference and equity shares in Respondent 1 to the appellant. The investment agreement mentioned the fact that by way of collateral...

...equity shares of the Transferee Company recognized in the books of accounts.6.12.2 Go Investments shall pass the following entry to record discharge of its preference share redemption liability...as stated in the clause above.(i) The preference share redemption liability account will be debited and(ii) The investment account in respect of equity...payable against preference share redemption liability over the carrying amount of the equity shares transferred shall be recorded as gain on transfer of investment. Conversely, the deficit, if any...

...was reduced to share interest, there was a transfer of property.20. This again, has no bearing on the question whether redemption of preference shares will come within the...share capital or redemption of shares is an exception to the rule contained in Section 77(1) that no company limited by shares shall have the power to buy its own shares. When it redeems its preference...extinguishment of any right in the preference shares had taken place. The preference share itself stood extinguished by redemption. Therefore, clause (ii) of Section 2(47) could not be invoked in the...

...31.10.2011 for extended/rolled over of redemption of preference share for a period of 3 years from the date of original redemption date. The Appellant has also submitted that the Respondent Company has...shareholders. They have convened meeting on 07.09.2016 with all preference shareholders to find a solution in the matter of redemption of shares. The Appellants preference share will be redeemed as per financial situation and their intention is not to withhold redemption of...the redemption of preference shares under this section shall not be deemed to be an increase or, as the case may be, a reduction, in the share capital of the company. (4) The capital redemption...

...against it. The following are the reasons stated by the petitioner company for reduction of preference share capital:—(1) The petitioner company has ceased all its business activities since March 27, 2016 and consequently no business revenues or profits are generated.(2) Presently, the petitioner company does not have sufficient reserves to permit redemption of...Preference Share Capital as well as the creation of capital redemption reserve in compliance with Section 55 of the Act;(3) The petitioner company has also not paid any dividend to...have sufficient reserves to permit redemption of the entire Preference Share Capital and for the creation of capital redemption reserve in compliance with Section 55 of the Act. In reply to the said...

...while computing long-term capital gain on redemption of the said preference shares. On the basis of the facts and circumstances of the case, the sale price per share ought to be accepted at Rs.100 per...previous year, M/s M. Manifold Pvt. Ltd. redeemed 79,625 9% non-cumulative preference shares held by the assessee at their face value of Rs.100/- per share and paid redemption proceeds of Rs.79,62,500...share of the same company could not vary merely because it was described as an equity share or a preference share and that different yardsticks could not be adopted for contemporaneous acquisition and redemption. The...

...is holding 100% Preference share of the Petitioner Company, due for redemption, for issuing fresh/new 25,00,000 9% Redeemable Preference Shares in lieu of old Preference Shares...Preference Shares of 1 Rs. 100 each for a redemption period of 20 years in lieu of old 25,00,000 9% Redeemable...Preference Shares due for redemption on 12 March 2021. Facts of the case: 3. The Petitioner Company had allotted 9% 25,00,000 Redeemable Preference Shares on 12 March 2001 to...

...1979-80 that since the assessed-company had to provide Rs. 8,782 as special reserve for redemption of 10 per cent preference share capital and had also to provide a sum of Rs. 9,200 towards general...provisions of the Companies Act, 1956, Shri M. L. Dujari submits that preference share could be redeemed only out of the profits of the company which were available for distribution as dividends or out of proceeds of a fresh issue of shares made for the purposes of redemption. According...redemption of preference shares before taking into account the surplus available for distribution as dividends. Shri M. L. Dujari further refers to us to the provisions of the...

...55(3) for Act would be applicable making new application before for the purpose of the the Hon'ble NCLT. proposed reduction of the Preference Share Capital and Section 55 of the Act has no applicability to the instant matter, whatsoever. Section 55(2) of the Act provides for redemption of...provisions of Section 55 specifically provides for Redemption of Preference Share Capital. The present Scheme is nothing, but redemption of Preference Share by way of Nil payment against each preference...Preference Share Capital of Alinea Healthcare Private Limited (formerly known as UnitedHealthcare India Private Limited) ALINEA HEALTHCARE PRIVATE...

...:—(a)Preference share capital is not part of paid-up share capital.(b)General reserve is to be reduced by :—(i)Amount transferred from capital redemption account...has allowed the deduction of dividend paid on preference shares. He, therefore, submitted that the Assessing Officer was not justified in holding that the preference share capital is not a part of paid-up share capital.(b)( i)Amount transferred from capital redemption account...preference share capital. As per his own total, the amount transferred from capital redemption account to profit and loss account was only Rs. 4,82,50,000. Rs. 7,13,50,000 was the amount for which capital...

... D. The provisions of Section 55 A propos observation made in specifically provides for Reduction paragraph 6 (D) of the report of of Preference Share Capital. The Regional Director is concerned, present Scheme is nothing, but the petitioner states that the redemption of... Redeemable Preference share capital from Rs.15,76,00,000/- (Rupees Fifteen Crores Seventy Six Lakhs) consisting of 15,76,000 (Fifteen Lakh Seventy Six Thousand) Redeemable...aggregate, 90% (Ninety per cent) of the total issued, subscribed and paid-up Preference share capital of Rs.14,18,40,000/- of the Company, as per the valuation certificate, comprising 14,18,400...

...preference shares into equity shares between 1 October 2014 to 31 December 2014 in one or more tranche by giving prior notice to the company of not less than 60 days in writing. One preference share is to be converted into ten equity shares of Rs. 10/- each. The Board also had option to convert the preference shares partly or fully in equity shares of the company with the consent of the petitioner on mutually agreed terms and conditions even before 1 October 2014. Redemption schedule...10, 11, 12 and 13 of the said judgement read as under:—10. Mr. Sengupta also submitted that the holder of a redeemable preference share did not stand on the same footing as a creditor and could not sue the company for redemption of...or out of the proceeds of a fresh issue of shares made for the purposes of the redemption. When a preference share is redeemed by a company, what a shareholder does in effect is to sell the share to the company. Such a transaction is nothing but sale of the preference shares by the shareholders to the company. The Apex Court also held that if redemption of...