TaxTMI 
TaxTMI 
2020 (9) TMI 850
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....tition and nor has any party controverted any averments made in the Petition. 2. The Learned Authorised Representative for the Petitioner Company submits that Article 9 of the Articles of Association of the Petitioner Company empowers the Petitioner Company to reduce its capital in any manner permitted by law from time to time by passing a Special Resolution in any manner for the time being authorized by law. 3. The Learned Authorised Representative for the Petitioner Company submits that the Board of Directors of the Company, at their meeting held on 21st September, 2019, have deemed it appropriate, subject to the approval of the shareholders, to reduce the equity share capital by reducing the paid-up equity share capital from Rs. 14,38,....
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....whereas, the company is having cash and cash equivalents of Rs. 52,325/- only as per balance sheet as at 30.06.2019 and negative profit and loss to the tune of Rs. 63,44,49,150/- as per balance sheet as at 31.03.2019 attached to the petition, therefore the company is not having resources to meet the proposed payout. The applicant may be put to explain the proposed sources to meet the requirements of payout. (b) Applicant to submit an Affidavit to the effect that the interest of the creditors and all the stakeholders and Government Revenue are protected as well as statutory dues are paid off. (c) The tax implications if any arising out of the proposal for reduction is subject to final decision of the Income Tax Authority. The approval ....
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....i Bench. The Regional Director has provided following comments: Para No. Observations of the Regional Director Reply by the Company Comments of the Regional Director 8(a) The proposed payout is to the tune of Rs. 71,39,450/- whereas, the company is having cash and cash equivalents of Rs. 52,325/- only as per balance sheet as at 30.06.2019 and negative profit and loss to the tune of Rs. 63,44,49,150/- as per balance sheet as at 31.03.2019 attached to the petition, therefore the company is not having resources to meet the proposed payout. The applicant may be put to explain the proposed sources to meet the requirements of payout. The Petitioner Company undertakes that it will not default in discharging the consideration of Rs. 71,39,45....
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....Petition will be met and answered in accordance with the law and further, the decision of the Income tax Authority will be binding on Petitioner Company, subject to right of appeal available to the Petitioner Company under applicable laws. Reply of the Company is Satisfactory 9. Apropos comments in Para 8(a) of the Supplementary Report of Regional Director is concerned, the Learned Authorised Representative appearing on behalf of the Petitioner Company submits that the Petitioner Company has made sufficient arrangements to discharge the consideration of Rs. 71,39,450/- to the shareholder in pursuant to the capital reduction scheme. The Petitioner Company has also submitted the bank statements for the last six months to indicate that it h....