I-T dept releases Mindtree shares held by Coffee Day promoter

Earlier on January 25, the I-T department had attached 74.90 lakh shares of Mindtree, of which Coffee Day holds 22,20,000 shares and Siddhartha 52,70,000. 

Published: 15th February 2019 02:47 AM  |   Last Updated: 15th February 2019 09:27 AM   |  A+A-

By Express News Service

BENGALURU: Bengaluru-based Coffee Day Enterprises Limited on Thursday said the company and its promoter V G Siddhartha have received orders from the Income-Tax Department to release the 74.90 lakh attached shares of IT firm Mindtree. 

Earlier on January 25, the I-T department had attached 74.90 lakh shares of Mindtree, of which Coffee Day holds 22,20,000 shares and Siddhartha 52,70,000. 

In a regulatory filing, Coffee Day said that I-T department has attached 46,01,869 shares of the company held by Siddhartha, for a potential future tax and penality obligations in respect of open assessments.

“The company and the promoter, V G Siddhartha, have received orders dated February 13, 2019, for release of provisional attachment of Mindtree shares under Section 281 B of Income Tax Act, 1961, vide ordered on January 25, 2019,” it said. 

In another filing, the company said that “V G Siddhartha has received an order under Section 281B of Income Tax Act, 1961, (on) February 13, 2019, provisionally attaching 46,01,869 shares of Coffee Day Enterprises held... with Way 2 wealth Brokers of V G 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.”

Siddhartha holds over 20 per cent stake in mid-tier IT services company Mindtree and there were media reports that it is planning to sell his stake in the IT company.

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