Taxation in the hands of beneficiary of renounced rights issue rights

1. There is one Company A in whom a group of individuals and a group of Corporates is holding Equity Share Capital 2. Company ‘B’ is one of the corporates holding shares, who is holding 44% stake in Equity Share Capital in the Company A 3. Current Market Value of the company’s existing shares is Rs 155 per share 4. The Board of Directors passed a special resolution to bring a Rights issue into the company for 1 Crore additional shares @ Rs 10 per share 5. An individual shareholder ‘C has negotiated with Company B to not renounce the rights in the proportionate shares offered to it by the company 6. Company ‘B’ renounces its rights in favor of individual ‘C’ and individual ‘C’ along-with other shareholders bring in proportionate money (with renounced rights wherever applicable) @ Rs 10 per share. 7. There is a group of companies along-with some individuals who hold about 15 % collectively in the company. Lets call them ‘D’ 8. Main objective of the above is to increase the shareholding of Individual ‘X’ (or though other corporate shareholders controlled by it). 85% of the shareholders of the company are in favor of this Questions 1. What is the tax implication of the above transaction in the hands of the company A, Company B, Individual ‘C’ and corporates (controlled by ‘C’ whichever is used in above transaction) 2. Can the Group ‘D’ (holding 15% shares in the company) raise any kind of objections , including but not limited to Oppression and mismanagement ? 3. What are the legitimate ways that the tax (if any) can be saved ? 4. What will be the tax implication if Company ‘B’ chooses to remain silent instead of renouncing, and the other shareholders bring in money in proportion to their own shareholding. 5. What are other ways to ensure minimum taxation if situation in Ques 4 above is not achievable ?