Scheme of Amalgamation is not Floated by Assessee with sole object of Avoidance of Income Tax: SC Condones Delay in SLP filed by Income Tax Dept [Read Order]

The Supreme Court condoned delay in the special leave petition filed by the Income Tax Department in the matter concerning the ruling that the scheme of amalgamation is not floated by assessee with sole object of avoidance of income tax.

the Income Tax Department filed the SLP against the order assed by the Calcutta High Court and the Calcutta High Court upholding the decision of the Gujarat High Court in Vodafone Essar Gujarat Ltd, ruled that “The Scheme has been framed and is approved by the shareholders in their wisdom, in our view, it cannot be said that the Scheme itself is floated with the sole criteria of tax avoidance simply because it may have effect and result into avoidance tax.”

A Two-Judge Bench of the Supreme Court comprising Justice BV Nagarathna and Justice Augustine George Maasih observed that “Delay condoned. Issue notice to the respondent.”

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