Bombay HC Allows Legitimate Tax Planning
Published on Thu, Jul 26,2012 | 09:25, Updated at Thu, Jul 26 at 09:28Source : Moneycontrol.com
The Bombay High Court in a recent ruling of AVM Capital Services Pvt. Ltd. & Ors has held that the implementation of a transaction under one of the alternative options available, which does not lead to any tax outflow, is not illegal or unlawful. The High Court further held that such a transaction is permissible provided it is within the framework of the law. The income-tax authorities are not required to be heard while sanctioning a scheme under sections 391 to 394 of the Companies Act, 1956, by placing reliance on the judgment of the Division Bench of Bombay High Court in the case of Sterlite Industries (India) Ltd.
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