Search Results For: Somasekar Sundaresan

DATE: August 30, 2018 (Date of pronouncement)
DATE: December 12, 2018 (Date of publication)
AY: -
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GAAR: Objections of the Dept that the scheme of amalgamation is a deliberate measure to avoid tax burden and is an ‘Impermissible Avoidance Agreement’ because it results in avoidance of Divided Distribution Tax (DDT), tax on business profits and MAT u/s ll5JB etc has merit. The scheme is not in public interest & cannot be sanctioned

Since Income Tax department (IT) has raised strong objections about tax benefit, tax avoidance, tax loss as discussed above, we are of the opinion that it would be advisable to settle the important /crucial issue of huge tax liability before sanctioning the scheme by the Tribunal rather than disputing the same at a later stage after the scheme is sanctioned by the Tribunal. It is mandatory as per section 230 (5) of the Companies Act, 2013, a notice under sub section (3) along with all the documents in such form shall also be sent to central government , Income Tax Authorities, RBI, SEBI, ROC, stock exchanges, OL, CCI and other Sectoral regulators or Authorities for their representations. In response to the notice received as per above section the Income Tax Department has raised valid observation/objections as detailed above, we find merit in the objections raised by Income Tax Department and we are also inclined to agree with the objections raised