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TMI Blog2022 (7) TMI 1159X X X X Extracts X X X X X X X X Extracts X X X X ..... esult into tax avoidance, it cannot be said that the only object of the Scheme is tax avoidance . Considering the various clauses of the Scheme, it is not possible for us to come to a conclusion that the Scheme is floated with the sole object of tax avoidance. - Decided against revenue. - ITAT/70/2015 IA No.GA/2/2015 (Old No.GA/1448/2015) - - - Dated:- 15-7-2022 - THE HON BLE JUSTICE T.S. SIVAGNANAM AND THE HON BLE JUSTICE BIVAS PATTANAYAK Mr. Prithu Dudheria, Adv. ...for the appellant Mr. Rishi Raju, Adv. Mr. Soumyajyoti Nandi, Adv. Mr. Deepankar Thakur, Adv. Mr. Ashutosh Singh, Adv. ...for the respondent ORDER The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheme of amalgamation which was approved by this Court could be stated to be a scheme which was floated by the assessee with the sole object of avoidance of income tax. The assessing officer held so. Aggrieved by such order, the assessee preferred appeal before the Commissioner of Income Tax (Appeals)-VIII, Kolkata. By order dated 19th November, 2009, the appeal was allowed. The finding rendered by the appellate authority is as follows: * * * * * * * * * However, once the Hon ble jurisdictional High Court approves the scheme of amalgamation, it is a natural corollary to presume that these issues were in the knowledge of the Hon ble High Court and, also, that such an order has been passed after due deliberations of all concerned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that these monies have been actually paid to the appellant, in whatever manner. Thus the question of genuinity also becomes redundant. Accordingly, I direct that the addition made under Sec. 68 of the Income Tax Act, 1961 on account of Amalgamation Reserve credit in the books be deleted. These grounds of appeal are allowed . Aggrieved by such finding, the revenue filed appeal before the tribunal. The tribunal re-examined the factual position and, in particular, noted the order passed by this Court approving the scheme of amalgamation more particularly, in paragraph (iv) of the order which states that since all the shares in the transferor companies are held inter se by the transferor companies, no shares shall be issued by the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot 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. Further, similar scheme of arrangement proposed by other telecommunication companies to achieve the aforesaid objective have been sanctioned by different High Courts. In our considered view, this Court cannot refuse the sanction on the aforesaid ground by coming to the conclusion that the only object of the Scheme is to avoid taxes. 47. It is, no doubt, true as argued by Mr. Thakor that in case the Scheme is sanctioned, it may result into tax avoidance on the part of the appellant, but it is r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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