TaxTMI 
TaxTMI 
2011 (7) TMI 53
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....ent for assessment year 20032004. The petitioner - assessee has also challenged the order dated 16th December, 2010 whereby the objections raised by the assessee for reopening of the assessment have been rejected. 3. The assessee is a private limited company engaged in the business of development of software. The shares of the assessee company were held in the initial three years, as follows. Shareholders of the petitioner-company 31-03-2001 31-03-2002 31-03-2003 Hatch Investments (Mauritius) Ltd., 99.85% 76.63% 76.25% Other shareholders 0.15% 23.37% 23.75% TOTAL 100% 100% 100% The shareholding of Hatch Investments (Mauritius) Limited ('Hatch Investments' for short) at 99.85% on as on 31st March 2001 was red....
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....rward and set off against the income of the previous year unless on the last day of the previous year which the shares of the company carry in not less than fifty one percent of the voting power were beneficially held by persons, who beneficially held shares of the company carrying not less than 51% of the voting power on the last day of the year in which loss was incurred. M/s.Nihilent Technologies P. Ltd. promoted by Shri L.C. Singh in May 2000 and as per share holders agreement out of the authorized capital of Rs.20,00,00,000/, the company has issued 15.1% shares to the promoters and stock management team as a sweat equity shares and 10% to EXOP trust for employees on approved stock plan. The balance 74.9% shares were brought by ....
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....e argument of the Revenue is that the assessee had failed to disclose that the shareholding of Hatch Investments in the assessment year 200102 was 99.85% and the same was reduced to 38.125% in assessment year 200304, because Hatch Investments, being a wholly owned subsidiary of Nedcor Bank Limited, South Africa, the Nedcor Bank Limited during assessment year 200304 had transferred 50% shares in Hatch Investments to Dimension Data PLC, UK ('Dimension' for short) thus the effective shareholding of Nedcor Bank Limited in the assessee Company stood reduced to 38.125% and, hence, Section 79 of the Act was attracted. 8. The argument on behalf of the assessee is that all the relevant facts were disclosed in the assessment proceedings for assessme....
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....Singh towards the end of May 2000 along with a group of professionals and support of the Nedcor Group of South Africa. We would like to bring your kind attention that during the year 200203, Nedbank Limited has divested its stake in Hatch Investments (Mauritius) Limited by selling of 50% shares of Dimension Data, PLC, UK. In a view of above, effective shareholding of Nedbank in Nihilent Technologies Private Limited (NTPL) has been reduced from 76.25% to 38.125% as on 31st March 2003." 11. Thus, it is evident that during the course of assessment proceedings for assessment year 200304 all material facts relating to the transfer of shares of Hatch Investments by Nedcor Bank Limited to Dimension, as well as the fact that the effective s....