TMI Blog2013 (6) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee is directed against the order of the CIT(A) -22, Mumbai dated 13.03.2013 pertaining to A.Y. 2006-07. The assessee has questioned the correctness of the order of the CIT(A) by raising five substantive grounds of appeal. 2. The grievance of the assessee is twofold the revenue authorities have erred in holding that the assessee did not fulfill the basic condition for getting benefit of deduction u/s. 10B of the Act because the assessee has violated the condition mentioned u/s. 10B(9) of the Act. Secondly, the authorities below have grossly erred in not appreciating the fact that clause 9 has been omitted by the Finance Act 2003 and, therefore, the conditions mentioned therein do not apply for the year under consideration. 3. The sum and substance of the grievance of the assessee relates to facts and also on the point of law. Let us first understand the facts of the case in the right perspective. The assessee is engaged in the business of manufacture of key intermediates used in production of anti-ulcerant drug Pantoprazole. The assessee company is a joint venture between the Altana Pharma-AG, Germany and Cadila Health Healthcare Ltd., Ahmedabad. The commercial p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egister of share transfer and minutes of the Board Meeting. The Assessing Officer was of the firm belief that for the transfer dated 10.02.2003 the procedure has not been followed properly. The assessee explained that there was a proposal for splitting the share certificate as per the request received from Byk Vermogensverwalatunh GmbH, Germany, for splitting up of share certificate No.6 consisting of 97,49,900 equity shares into two certificates, one for 3,00,000 equity shares of ₹ 10/- each and another for 94,49,900 equity shares of ₹ 10/- each. The request of the said company was accepted by the assessee company and, accordingly, share certificate was split into two certificates as mentioned hereinabove. It was further explained that the assessee company received further request from Byk Vermogensverwalatunh Gmbh, Germany, for transfer of 3,00,000 equity shares to Altana Pharma AG. The Board considered the request and approved the request of the said company for the transfer of 3,00,000 equity shares to Altana Pharma AG. The Assessing Officer did not accept this transaction. The Assessing Officer was of the firm belief that the assessee has made a conscious, delibera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has grossly erred in not considering the remand report dated 29.06.2010. The counsel strongly submitted that on point of law, the case of the assessee is squarely covered by the decision of the Mumbai Bench in the case of WNS Global Services Pvt. Ltd. (supra). Per contra the DR relied upon the findings of the Assessing Officer. 6. Before proceeding further let us examine the share pattern at the end of each financial year from the inception i.e. 31.03.2000 to 31.03.2003:- Name of the shareholder Percentage of Shareholding As on 31-03-2000 As on 31-03-2001 As on 31-03-2002 As on 31-03-2003 BYK Gulden Lomberg Chemische Fabrik GmbH (Name changed to Altana Pharma AG, with effect from 01-07-2002 49.9800% 49.9995% 49.9995% 1.5000% Cadila Healthcare Limited 49.9800% 49.9995% 49.9995% 49.9995% Mr. Pankar R.Patel 0.0200% 0.0005% 0.0005 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 12.05.2010. 1. Details of flow of fund for transfer of shares between the Byk Vermogensver waltung GMBH Altana Pharma 2. Original Minutes of Board Meetings of the assessee company reflecting the Board Resolution dated 13.03.2003. 3. Copies of RBI Approval for issue of shares to Altana Pharma 4. Original acknowledged copy of forwarding letter dated 20.03.2003, in respect of 2nd interim dividend paid during F.Y. 2002-03. 5. Copy of RCD 2 in respect of the 1st interim dividend paid by the assessee company during F.Y. 2002-03. 6. Copy of the Annual Return as per the Companies Act, 1956, filled by the assessee company with the Registrar of Companies (ROC), during F.Y. 2003-04. 7. Copy of statement of Bank Account no. 270818800 of Altana Pharma reflecting the amount of dividend received by Altana Pharma AG. 8. The original share transfer form dated 05.02.2003. On verification, all the above documents are found to be in accordance with the due compliance of the procedure in respect of the change in shareholding which had taken place before March 2003. A perusal of this remand report clearly establishes that the share has been transferred before March 2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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