The Firm

Show Timings:

Friday: 10.30 pm, Saturday: 11.30 am

Sunday: 9:30am & 11.00pm

CNBC TV18
Network18

IT Act Non-Compliance Has No Bearing On Companies Act

Published on Tue, Aug 07,2012 | 22:51, Updated at Tue, Aug 07 at 22:55Source : Moneycontrol.com 

The Hon’ble Delhi High Court vide its judgment dated July 23, 2012, in the case of Indo Rama Textile Ltd held that in a demerger, transfer of all common assets and/or liabilities relatable to undertaking being demerged is not required so long as the assets and liabilities transferred, by themselves, constitutes a running business and the business can be carried on uninterruptedly with such assets and liabilities alone.

The Court further held that compliance of Section 2(19AA) of the Income-tax Act, 1961 (“IT Act”) is relevant only for determining whether the demerger is tax neutral or not as per the IT Act and non-compliance of the same does not in any manner result in the arrangement not being regarded as a ‘demerger’ under Section 391 to 394 of the Companies Act, 1956 (“Companies Act”).

This M&A Alert by Nishith Desai Associates analyses this judgment by the Bombay HC.

Click on the accompanying attachment for more..

Attachments : MA HOTLINE_AUG0712.pdf
 
Twitter


 
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.