The NCLAT has dismissed petitions filed by the Income Tax Department, which raised objection over the approval granted to Reliance Jio Infocomm scheme to hive off its fibre and tower business into two separate units.
The Ahmedabad-bench of National Company Law Tribunal (NCLT) had earlier this year granted permission to the composite scheme of the arrangement, through which two companies were proposed to be demerged — Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd.
This was opposed by the IT department by challenging it before the National Company Law Appellate Tribunal (NCLAT).
The IT department has contended that by the scheme of the arrangement, the transferor company Reliance Jio Infocomm has sought to convert the redeemable preference shares into loans.
