Coffee Day will free Mindtree shares attached by I-T Department

Coffee Day will free Mindtree shares attached by I-T Department

Coffee Day Enterprises has said it would take required action in the next few days to get a part of shares of IT firm Mindtree, owned by Coffee Day and its promoter V.G. Siddhartha, released by the Income Tax Department.

In a release on Sunday the company drew attention to a stock exchange filing made the previous day, which said that 74.90 lakh shares of Mindtree have been affected by the provisional attachment by the Income Tax Department over a potential tax demand, where 22.20 lakh shares are held by Coffee Day Enterprises in Mindtree and 52.70 lakh shares by its promoter Siddhartha.

In a stock exchange filing on Saturday, Coffee Day said it has already discharged its tax liability along with the revised returns, and "there is no tax liability payable by the company and its subsidiaries as per the revised returns filed".

"The company would like to clarify that in response to notices u/s 148 and 153A of the Income tax, the Promoter and the Company have filed required revised returns," the operator of the Cafe Coffee Day (CCD) chain said. 

"The promoter has discharged all the tax liability along with the revised returns. Further, there is no undisputed tax liability for the promoter and the company. The required action will be taken to release these shares in the next few days." 

The filing said the attachment also "prohibited for transfer or charge" of 22.2 lakh equity shares of Coffee Day Enterprises Ltd, and 52.7 lakh shares held by Siddhartha, while the order would be applicable for six months from the date of the order of January 25, 2019. 

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Source: IANS