TMI Blog2011 (3) TMI 1439X X X X Extracts X X X X X X X X Extracts X X X X ..... ner to appear before the respondent authority. - Writ Petition No. 7716/2011 - - - Dated:- 24-3-2011 - Huluvadi G. Ramesh, J. JUDGEMENT Petitioner is a company incorporated under the laws of Cyprus. It holds 60% of the shares in Finsider International Company Ltd. registered in UK. Petitioner purchased shares in Finsider International Company Ltd. from another company registered in UK called Early Guard Limited. This Finsider International Company was holding 51% shares of Sesa Goa Ltd. an Indian Company. petitioner and West Globe Ltd., a company incorporated under the laws of Mauritius having entered into an agreement purchased and acquired all the shares of the Finsider International Company Ltd. on 23-4-2007 from Early Guar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nability to provide information pertaining to Early Guard Ltd. Hence, this petition being aggrieved by the notice dated 12-10-2009 - annexure B. Heard the counsel representing the parties. According to the learned Sr. counsel for the petitioner, petitioner has produced the agreement entered into between Finsider International Company Ltd. UK and all details are available and acquisition of shares does not amount to acquisition of capital gains. The demand notices issued for initiating proceedings under section 201 of the Act is bad in law. Accordingly, learned counsel tried to rely upon the judgment of the Apex Court in the case of Vodafone International Holdings BV v. Union of India (2010) 329 ITR 126 (Bom.) to contend that the tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... according to the stand of the Revenue as per section 195 of the Act any person paying to a non-resident is liable to tax at source. Thus, according to the Revenue, Richter Holding Ltd. falls within the definition read with section 9 of the Act and was liable to deduct tax in respect of payments made for purchase of capital asset i.e., 51% shares of M/s. Sesa Goa Ltd. Accordingly, learned counsel for the Revenue relied upon the decision in the case of Vodafone International Holdings B V v. Union of India (2009) 179 Taxman 129 where a non-resident company acquired shares of another non-resident company which held 67% shares in an Indian Company, show cause notice was issued to the assessee in default for failure to deduct tax at source while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner to urge all contentions before the respondent authority pursuant to such show cause notice issued to contend that the purchase of 51% shares does not amount to transfer of capital asset. Though the petitioner contends that the agreement entered into is produced, that itself is not sufficient to know as to the nature of transaction between Finsider International Company Ltd. and Sesa Goa Ltd. which is an Indian Company. The agreement produced is said to be between the petitioner and Early Guard Ltd. on the one hand an Mitsui Company Ltd. Japan. That may not be sufficient to know what is the transaction between Finsider International Company Ltd. and Sesa Goa Ltd. an Indian Company since it is premature at this stage to arrive at a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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