Allotment - Return of ‑ Shares allotted by a company to a person in lieu of a genuine debt due to him ‑ Whether in compliance with provisions of the section

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..... ‑ Shares allotted by a company to a person in lieu of a genuine debt due to him ‑ Whether in compliance with provisions of the section The views conveyed in Department s Circular Letter No. 8/4(75)/69‑CL-V, dated 18‑11‑1969 have since been re‑examined. The Department is now of the view that the allotment of shares by a company to a person in lieu of a g .....

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..... are generally used and accepted as money. If consideration for allotment is not flow of cash but some other mode of payment, e.g., cancellation of a genuine debt or outstanding bills, for goods sold and delivered, marketable securities, time deposits in banks, then allotment cannot be treated as for cash. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management I .....

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