Coffee Day Enterprises Thursday said the Income Tax Department has released 74.90 lakh attached shares of IT firm Mindtree, owned by the company and its promoter V G Siddhartha, but attached Siddhartha’s 46.01 lakh shares in Coffee Day Enterprises over potential tax demand.
Last month, Income Tax Department had attached 74.90 lakh shares of Mindtree, in which 22.20 lakh shares belonged to Coffee Day Enterprises and 52.70 lakh shares belonged to its promoter Siddhartha.
“The company and the promoter, VG Siddhartha, have received orders dated February 13, 2019, for release of provisional attachment of Mindtree shares under section 281B of Income Tax Act, 1961 vide ordered on January 25, 2019,” Coffee Day Enterprises said in a regulatory filing.
In a separate filing, Coffee Day Enterprises, which operates popular coffee chain Cafe Coffee Day (CCD), said, “VG Siddhartha has received an order under section 281B of Income Tax Act, 1961 February 13, 2019, provisionally attaching 46,01,869 shares of Coffee Day Enterprises held…with Way 2 wealth Brokers of VG Siddhartha to safeguard the interest of the revenue in respect of likely future tax and penality obligations in respect of open assessments”.
The company said it “would like to clarify that in response to notices under section 148 and 153A of the Income Tax (Act), the promoter (Siddhartha) has filed required revised returns and discharged all the tax liability along with the revised returns.
“Further there is no undisputed tax liability for the promoter,” it added.
Siddhartha, owns about 21 per cent stake in Mindtree, and is said to be in advanced discussions with various entities to sell his shares in the IT company.
Source: Business Standard