Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
A composite scheme of amalgamation and demerger, once approved by shareholders and creditors, could not be narrowed by directing a separate demerger application or by altering the scheme's material terms. The NCLAT held that the scheme identified the amalgamated company, resulting company and demerged undertaking with sufficient specificity, and that demerger was an integral consequence of the sanctioned composite scheme under Sections 230 to 232. It also corrected factual errors in the sanction order concerning the effective date, the identity of the resulting company, and an unnecessary rider tied to an unadmitted petition. The order was set aside to the extent inconsistent with the approved scheme, while statutory dues, stamp duty, taxes and compliance obligations remained fully preserved.
A composite scheme of amalgamation and demerger, once approved by shareholders and creditors, could not be narrowed by directing a separate demerger application or by altering the scheme's material terms. The NCLAT held that the scheme identified the amalgamated company, resulting company and demerged undertaking with sufficient specificity, and that demerger was an integral consequence of the sanctioned composite scheme under Sections 230 to 232. It also corrected factual errors in the sanction order concerning the effective date, the identity of the resulting company, and an unnecessary rider tied to an unadmitted petition. The order was set aside to the extent inconsistent with the approved scheme, while statutory dues, stamp duty, taxes and compliance obligations remained fully preserved.
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