CBDT Notification: Conditions for Deemed Demerger of Public Sector Company [CBDT NOTIFICATION NO. 93/2016 dated 14th October, 2016 [No.149/251/2015-TPL]
The reconstruction or splitting up of a company which ceased to be a public sector company as a result of transfer of its shares by the Central Government, into separate companies, shall be deemed to be a demerger if the following conditions are fulfilled, namely:-
(i) that such reconstruction or splitting up has been made to transfer any assets of the demerged company to the resulting company to give effect to the conditions mentioned in the Share Holders’ Agreement and Share Purchase Agreement; and
(ii) that the resulting company is a public sector company.