Set-off of Losses Following Demerger Disallowed by Indian Tax Tribunal

Recently, the Pune bench of the Income Tax Appellate Tribunal denied set-off of tax losses to a resultant company, pursuant to a demerger, by holding that the demerger was not undertaken for bona fide purpose.  By Partner Kunal Savani, Principal Associate Bipluv Jhingan and Associate Lakshya Gupta. (Photo Credit: Bloomberg Tax)