2015 (8) TMI 475 - SCH - Income Tax

Recovery of tax - Scheme of demerger - objection of Income-tax Department that the Scheme in question is floated with the sole object of avoiding the tax liability such as Income-tax, Stamp Duty, VAT, etc. and that the sole object is only to avoid capital gains tax - HC 2012 (9) TMI 100 - Gujarat High Court held it cannot be said that the Scheme has no purpose or object and that it is a mere device/subterfuge with the sole intention to evade taxes, particularly when even the incidence of tax purportedly sought to be evaded is not established on facts - sanction of the Scheme granted - Held that - We are not inclined to entertain the special leave petitions. The special leave petitions are, accordingly, dismissed. We only state that the Income- tax Department is entitled to take out appropriate proceedings for recovery of any tax statutorily due from the transferor or transferee company or any other person who is liable for payment of such tax due.

Summary

The Supreme Court dismissed the special leave petitions. The Income-tax Department can proceed with recovery of any tax due from the transferor, transferee company, or other liable persons.