Authority rules B+G+31 service apartment is commercial building construction, not multi-storey residential for tax classification under RERA definitio...
Resale price method upheld for distribution; assessee's margins accepted and certain transfer-pricing adjustments deleted due to documented reimbursem...
SC dismissed the appeal and rejected the Section 7 invocation, holding the appellant was not a financial creditor. The Court found the cumulative redeemable preference shares constituted share capital, not a loan, and dividends depend on profits; amounts paid on CRPS do not qualify as debt. Redemption had not become due because there were no profits, reserves or fresh-issue proceeds for redemption, so no default under Section 3(12) arose. The prior liability stood extinguished on issuance of CRPS, converting the relationship into that of a preference shareholder, and there was no commercial effect of borrowing. Consequently, the Section 7 application was unsustainable and the appeal was dismissed.
SC dismissed the appeal and rejected the Section 7 invocation, holding the appellant was not a financial creditor. The Court found the cumulative redeemable preference shares constituted share capital, not a loan, and dividends depend on profits; amounts paid on CRPS do not qualify as debt. Redemption had not become due because there were no profits, reserves or fresh-issue proceeds for redemption, so no default under Section 3(12) arose. The prior liability stood extinguished on issuance of CRPS, converting the relationship into that of a preference shareholder, and there was no commercial effect of borrowing. Consequently, the Section 7 application was unsustainable and the appeal was dismissed.
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