NCLAT rejects I-T plea against Reliance Jio demerger

The National Company Law Appellate Tribunal (NCLAT) has dismissed the petition of the income tax department raising objection over the approval granted by the Ahmedabad bench of the National Company Law Tribunal to Reliance Jio to hive off its fibre and tower business into two separate units.

“Mere fact that a scheme may result in reduction of tax liability does not furnish a basis for challenging the validity of the same… we are not inclined to interfere with the scheme of arrangement as approved by the tribunal,” the NCLAT said in its order while dismissing the appeal of the income tax department.