https://www.taxtmi.com/caselaws?id=459432 A composite scheme of arrangement involving demerger and transfer of undertakings was sanctioned under the Companies Act, 1956 because it had been unanimously approved by shareholders and creditors and was found to be lawful and fair. Objections that the scheme did not satisfy the Income-tax Act definition of demerger were rejected, as tax neutrality under Section 2(19AA) does not control sanction of a scheme under the Companies Act. The stamp duty objection was also not treated as a bar, because the petitioners undertook to pay duty in accordance with law and assessment or recovery issues could be examined by the competent authorities at the appropriate stage. en-us Tue, 30 Oct 2012 00:00:00 +0530 Fri, 13 Dec 2024 19:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459432 A composite scheme of arrangement involving demerger and transfer of undertakings was sanctioned under the Companies Act, 1956 because it had been unanimously approved by shareholders and creditors and was found to be lawful and fair. Objections that the scheme did not satisfy the Income-tax Act definition of demerger were rejected, as tax neutrality under Section 2(19AA) does not control sanction of a scheme under the Companies Act. The stamp duty objection was also not treated as a bar, because the petitioners undertook to pay duty in accordance with law and assessment or recovery issues could be examined by the competent authorities at the appropriate stage. Case-Laws Income Tax Tue, 30 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459432