https://www.taxtmi.com/caselaws?id=215394 A sanctioned demerger scheme must be read as a whole, and Section 2(19AA) of the Income-tax Act does not require transfer of every common asset or liability to the resulting company. The relevant enquiry is whether the transferred assets are sufficient for the undertaking to function independently as a going concern. Section 392(1)(b) of the Companies Act permits modification only to secure proper working of the scheme, not to rewrite the substantive allocation of assets or import a broader transfer obligation than the scheme itself provides. The commentary also notes that where common assets are retained under the scheme and acted upon by the parties, that allocation remains effective, subject only to limited procedural modification where necessary. en-us Mon, 23 Jul 2012 00:00:00 +0530 Mon, 30 Jul 2012 11:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215394 A sanctioned demerger scheme must be read as a whole, and Section 2(19AA) of the Income-tax Act does not require transfer of every common asset or liability to the resulting company. The relevant enquiry is whether the transferred assets are sufficient for the undertaking to function independently as a going concern. Section 392(1)(b) of the Companies Act permits modification only to secure proper working of the scheme, not to rewrite the substantive allocation of assets or import a broader transfer obligation than the scheme itself provides. The commentary also notes that where common assets are retained under the scheme and acted upon by the parties, that allocation remains effective, subject only to limited procedural modification where necessary. Case-Laws Companies Law Mon, 23 Jul 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215394