Coffee Day Will Take ‘Required Action’ To Get Attached Mindtree Shares
Coffee Day Enterprises has said it would take required action in the next few days to get a portion of IT firm Mindtree shares—owned by the company and its promoter V G Siddhartha—released by the Income Tax Department.
The I-T department has attached a portion of shares held by Siddhartha and Coffee Day Enterprises Ltd. in IT firm Mindtree over a potential tax demand.
Further, Coffee Day Enterprises, which operates popular coffee chain CCD, said it has already discharged its tax liability along with the revised returns. “There is no tax liability payable by the company and its subsidiaries as per the revised returns filed. 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,” Coffee Day Enterprises informed in a regulatory filing Saturday. It also said that the “required action will be taken to release these shares in the next few days”.
According to the company, 74.90 lakh shares of Mindtree have been affected by the provisional attachment by the Income Tax Department. Coffee Day Enterprises holds 22.20 lakh shares in Mindtree and while Siddhartha owns 52.70 lakh.
Coffee Day Enterprises and Siddhartha have “received orders u/s. 281B of Income Tax Act, 1961 provisionally attaching few shares held in Mindtree to safeguard the interest of the revenue in respect of possible future tax and penalty obligations in respect of open assessments”, it said.
“The company would like to clarify that in response to notices u/s 148 & 153A of the income tax, the promoter and the company have filed required revised returns,” said Coffee Day Enterprises in a clarification filed to bourses. Siddhartha, who owns about 21 percent stake in Mindtree, is said to be in advanced discussions with various entities to sell his shares in the IT company.
As of December, Siddhartha held 54.69 lakh shares (3.3 percent stake) in Mindtree, while Coffee Day Enterprises Ltd had more than 1.74 crore shares (10.63 per cent stake). Another entity, Coffee Day Trading Ltd., holds over 1.05 crore shares (6.45 per cent holding). Mindtree's promoters, which include Subroto Bagchi, Krishnakumar Natarajan, NS Parthasarathy, and Rostow Ravanan, together hold roughly 13 percent stake in the company.