Amalgamation scheme sanctioned after no objection from company registrar and silence from the tax department

A proposed scheme of amalgamation was sanctioned after the Registrar of Companies raised no objection and the Income Tax Department did not respond within the stipulated time. The Court treated the absence of any objection from the Central Government disclosure and the tax department's silence as supporting approval of the scheme, and orders were made in terms of the petition.

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Issues: Whether the proposed scheme of amalgamation deserved sanction in the absence of objection from the Registrar of Companies and after no objection was received from the Income Tax Department.

Analysis: The affidavit of the Central Government disclosed that the Registrar of Companies, West Bengal had no objection to the proposed scheme. The scheme had also been forwarded to the Income Tax Department for comments, observations or objections, but none were received within the stipulated time. On that basis, the Court proceeded on the footing that the Income Tax Department had no objection to the sanction of the scheme.

Conclusion: The proposed scheme of amalgamation was sanctioned and orders were passed in terms of prayers (a) to (m) of the petition.

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