Benefit of Demerger U/s. 47(viia) not available in case Transfer is not as per section 2(19AA)

ITO Vs M/s. Datex Ohmeda (India) Pvt. Limited (ITAT Kolkata) Contention raised by the ld. Counsel for the assessee is that the GE loan was converted into equity share capital on August 07, 2008 and since the petition for approval of scheme of demerger was filed before the Hon’ble Calcutta High Court in January, 2009, the said loan was not available and it was not possible for the assessee-company to transfer the said liability to Wipro-GE as a part of demerger. He has pressed into service the principle of impossibility of performance as embedded in legal maxim, “lex non cogit ad impossibli...