A STUDY ON CAPITAL GAIN TAX EXCEMPTION IN COURT APPROVED AMALGAMATION UNDER SECTION 47 OF THE INCOME TAX ACT 1961
AUTHOR – SAMPRITASAI A.R, STUDENT AT SCHOOL OF LAW. VELS INSTITUTE OF SCIENCE, TECHNOLOGY AND ADVANCED STUDIES PALLAVARAM, CHENNAI – 600 117.
BEST CITATION – SAMPRITASAI A.R,, A STUDY ON CAPITAL GAIN TAX EXCEMPTION IN COURT APPROVED AMALGAMATION UNDER SECTION 47 OF THE INCOME TAX ACT 1961, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (5) OF 2026, PG. 918-924, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/V6I598
Corporate amalgamation is a pivotal strategy for firms seeking to strengthen their market presence, achieve operational efficiencies, and unlock financial synergies. In India, such mergers and restructurings are governed by a complex interplay of corporate and tax laws designed to balance business growth with stakeholder protection. The Companies Act, 2013, along with the Income Tax Act, 1961, provide the legal and fiscal framework that regulates amalgamations, requiring judicial oversight primarily through the National Company Law Tribunal (NCLT).
This framework aims to uphold principles of transparency, fairness, and tax neutrality while facilitating efficient corporate reorganization. However, practical challenges such as procedural delays, conflicting stakeholder interests, and diverse judicial interpretations continue to influence the landscape. This article explores the legal architecture and tax implications of amalgamations in India, examining legislative provisions, regulatory roles, judicial pronouncements, and existing challenges to offer a comprehensive understanding of this critical aspect of corporate restructuring.