Case Law Details
In the present case, the observation of the Regional Director that the demerger and transfer of undertaking – III of the demerged company to the resulting company No. 2 would result in non-compliance of section 2(19AA) of the Income-tax Act, 1961, does not appear to be valid as the definition of ‘demerger’ under the Income-tax Act, 1961,
would be relevant only for the limited purpose of ascertaining whether the demerger is tax neutral, or not, compliance of the said provision of law would be made for availing tax concessions and, thus, it cannot be read as a mandatory requirement for all schemes of amalgamation, arrangement or demerger under the provisions of sections 391 to 394 of the Companies Act.
HIGH COURT OF GUJARAT
Kishore Vadilal (P.) Ltd., In re
SMT. ABHILASHA KUMARI,J.
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What if post demerger, 3/4th shareholding condition is violated?
What are the possible consequences?
If possible will any one quote any case law on the issue stated above