"Orders sanctioning amalgamation or absorption are covered by the Indian Stamp Act as if it were a Conveyance Deed." Justify the statement with judicial pronouncements.

'Conveyance' as is defined under section 2(10) of the Indian Stamp Act, 1899 refers to any instrument by which any moveable or immovable property is transferred inter vivos. Section 2(g)(iv) of the Bombay Stamp Act, 1958 specifically included orders under section 394 of Companies Act, 1956 that relates to amalgamation and absorption. The landmark decision of Bombay High Court in Li Taka Pharmaceuticals v. State of Maharashtra (1996) 8 SC 102 (Bom.) has serious implications for mergers covered not just by the Bombay Stamp Act, 1958 but also mergers covered by Acts of other States. The following are the major conclusions of the Hon'ble Court: An amalgamation under an order of Court under Section 394 of the Companies Act, 1956 is an instrument under the Bombay Stamp Act, 1958. States are well within their jurisdiction when they levy stamp duty on instrument of amalgamation. Stamp duty would be levied not on the gross assets transferred but on the "undertaking", when the transfer is on a going concern basis, i.e. on the assets less liabilities. The value for this purpose would thus be the value of shares allotted. This decision has been accepted in the Act and now stamp duty is leviable on the value of shares allotted plus other consideration paid. Calcutta High Court has held in Emami Biotech Ltd (2012) with a similar view.