Food supplement classification requires common parlance and authoritative tests, preventing treatment as proprietary Ayurvedic medicines without suppo...
Specified regulatory authority income receives conditional tax exemption, subject to non-commercial activity, unchanged income character, and return f...
Tax exemption for regulatory authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and return-filing...
Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
The HC upheld the findings of the CIT(A) and ITAT that the transfer of divisions to two companies did not constitute a 'demerger' under Section 72A(4) of the IT Act. The court confirmed that for Section 72A(4) to apply, there must be a transfer of all assets and liabilities of the division to the resulting company, and consideration must be paid by share issuance to the shareholders of the demerged company. Here, only specified assets and liabilities were transferred, and consideration was paid in cash, approved under company law. Consequently, carry forward of business loss and unabsorbed depreciation was permitted, and no substantial question of law arose.
The HC upheld the findings of the CIT(A) and ITAT that the transfer of divisions to two companies did not constitute a 'demerger' under Section 72A(4) of the IT Act. The court confirmed that for Section 72A(4) to apply, there must be a transfer of all assets and liabilities of the division to the resulting company, and consideration must be paid by share issuance to the shareholders of the demerged company. Here, only specified assets and liabilities were transferred, and consideration was paid in cash, approved under company law. Consequently, carry forward of business loss and unabsorbed depreciation was permitted, and no substantial question of law arose.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4803
Join Channel
TaxTMI 
