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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Full Text of the Document

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....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 genuine debt due towards him is in perfect compliance with....