https://www.taxtmi.com/caselaws?id=57989 A deemed-income provision relating to transfer of depreciable assets is to be strictly construed, and a court-approved scheme of arrangement that does not amount to a sale or exchange to the assessee-company and does not result in money consideration received by it does not attract section 41(2). The transfer of the Berar Oil Industries unit under a scheme under sections 391 and 394 of the Companies Act, 1956, was treated as a tripartite arrangement involving shares allotted to shareholders, not "moneys payable" to the company. The material on bad debts also indicated that advances to transport operators, left unrecovered after contracts were not completed, may require examination as a trading or business loss rather than as bad debts. en-us Thu, 08 Feb 1990 00:00:00 +0530 Wed, 15 Dec 2010 17:13:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57989 A deemed-income provision relating to transfer of depreciable assets is to be strictly construed, and a court-approved scheme of arrangement that does not amount to a sale or exchange to the assessee-company and does not result in money consideration received by it does not attract section 41(2). The transfer of the Berar Oil Industries unit under a scheme under sections 391 and 394 of the Companies Act, 1956, was treated as a tripartite arrangement involving shares allotted to shareholders, not "moneys payable" to the company. The material on bad debts also indicated that advances to transport operators, left unrecovered after contracts were not completed, may require examination as a trading or business loss rather than as bad debts. Case-Laws Income Tax Thu, 08 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57989