TMI BlogGuidelines regarding Change in Shareholding pattern, Name Change of SEZ Developers and SEZ UnitsX X X X Extracts X X X X X X X X Extracts X X X X ..... a decision allowing for transfer of in-principle approval and formal approval issued to an SEZ developer to its subsidiary or SPV, change of name of developer without change in shareholding pattern, demergers in terms of court decisions, where part equity is held by State Govt. or its organisation by virtue of the State Government's requirements. The BoA had also decided that where at least 51% equity is held by the original developer, i.e., where the controlling interest of the original developer continue to be there. 2. The Department of Legal Affairs had then opined that there is no specific provision in the SEZ Act, 2005 and there is a need to show that facility granted/ concession given will not be misused, a policy decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s resulting in change of ownership would be decided on merits by the Board of Approvals on a case to case basis. 4. The matter has been examined in consultation with the Department of Legal Affairs who have opined that Sub-section 10 of the Section 10 of the SEZ Act, 2005 empowers the Board to issue such directions or formulate such schemes as it may consider necessary for operation of the SEZ is in order to promote exports or to protect the interest of units or in the public interest. 5. Accordingly, the decisions of the BOA in its 31st and 69th are adopted as guidelines in the cases of Change of Shareholding pattern, name change of SEZ Developers and units etc. as under : (i) Re-organisation including change of name, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) Full financial details relating to change in equity/ merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v) The Assessing Officer shall have the right to assess the taxability of the gain/ loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. vii) The unit shall furnish details of PAN and jurisdictional assessing offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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