Section 47(xii) - Transfer of land by a sick industrial company which is managed by its workers’ co-operative - Income Tax - Ready Reckoner - Income Tax

Section 47(xii) :- Transfer of land by a sick industrial company which is managed by its workers co-operative Section Transaction not regarded as transfer Transferor u/s 2(47) Transferee u/s 2(47) Capital Asset involved u/s 2(14) Period of holding 47(xii) Transfer of a capital asset being land of a sick industrial company made u/s 18 of Sick Industrial Companies Act, 1985, where such company is managed by its workers co-operative. A sick Industrial company managed by its worker's co-operative Any person as decided u/s 18 of Sick Industrial Companies Act, 1985 A Land POH of previous owner shall not be considered. The transfer should be made during the period commencing from the PY in which the said company has become a sick industrial company u/s 17(1) of that Act and ending with the PY during which the entire net worth of such company equal to or exceeds the accumulated losses. Conditions to be satisfied The company is sick industrial company. It transfers land and it is transferred under a scheme prepared and sanctioned u/s 18 of SICA. The land is transferred during the period commencing from the previous year in which the said company has become a Sick Industrial Company ending with the PY during which entire net worth of such company becomes equal to or exceeds the accumulated losses. Such Sick Industrial Company is managed by its Workers Cooperative. if all the above conditions are satisfied, the transfer of such land may not be regarded as a transfer for capital gain purposes.