Case Law Details
We have heard learned counsel for the parties and perused the impugned order dated 20.01.2004 passed by the Division Bench of High Court of Judicature at Madras in T.C. No.55 of 2001.
Briefly stated, the facts of this case are as follows:
M/s Annamalaiar Mills (P) Ltd., respondent herein is a holding company of M/s Annamalaiar Textiles (P) Ltd. Hundred per cent shares of M/s Annamalaiar Textiles (P) Ltd. were held by the respondent company. In the respondent company, there were two groups of shareholders; the majority shareholder called Group A was having 61.26 per cent shares whereas the minority shareholders called Group B were holding 38.74 per cent shares.
An agreement was entered into between the two groups on 24.06.1985 by which Group A came to hold all the shares in the holding company i.e. the respondent herein and Group B was given 100 per cent shares in the subsidiary company i.e. M/s Annamalaiar Textiles (P) Ltd. However, M/s Annamalaiar Textiles (P) Ltd also paid a sum of Rs.42.45 lakhs to the respondent company .
Proceedings under the Gift Tax Act were initiated in respect of payment of Rs.42.45 lakhs received by the respondent company. However, we are not concerned with the question of levy of gift tax under the present proceedings.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
