https://www.taxtmi.com/caselaws?id=264457 The Court held that the scheme involving the gifting of shares of a company to its shareholders violated Section 123 of the Companies Act, 2013, as it amounted to payment of dividend in kind, which is prohibited. Additionally, the scheme was found to contravene Section 281 of the Income Tax Act, 1961, as it could hinder tax claims against the petitioner. Consequently, the Court deemed the scheme illegal and dismissed the Company Scheme Petition, emphasizing the importance of compliance with all legal provisions in schemes of arrangement. en-us Tue, 15 Sep 2015 00:00:00 +0530 Fri, 25 Sep 2015 07:32:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=264457 The Court held that the scheme involving the gifting of shares of a company to its shareholders violated Section 123 of the Companies Act, 2013, as it amounted to payment of dividend in kind, which is prohibited. Additionally, the scheme was found to contravene Section 281 of the Income Tax Act, 1961, as it could hinder tax claims against the petitioner. Consequently, the Court deemed the scheme illegal and dismissed the Company Scheme Petition, emphasizing the importance of compliance with all legal provisions in schemes of arrangement. Case-Laws Income Tax Tue, 15 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=264457