TaxTMI 
TaxTMI 
2026 (3) TMI 1576
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....M APPL. 22417/2025 (delay of 160 days in filing reply) 1. By way of instant application filed, the petitioner-company seeks requisite direction/ permission to repatriate the amount of dividend which the petitioner-company is required to pay to its shareholders situate outside India. 2. The facts necessary for the present purpose are that the petitioner is a company registered in India. Many of its shareholders are outside India and the ultimate parent/holding company is situated in China. 3. The instant writ petition (W.P.(C) no. 6352/2022) was filed laying challenge to the action of the respondents, who had attached/freezed all bank accounts and trade receivables and stopped all outward remittances by way of impugned order dated 1....
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....sentatives do not deal with the FDR in any manner. There shall be a lien in favour of the Department with respect to both the FDRs till conclusion of the assessment proceedings and thereafter the amount will be dealt in accordance with law. The Bankers will issue a letter to the AO acknowledging the lien in favour of the Department (ii) The Respondents are directed not to release any refund [which is stated to be to the tune of Rs.30 crores (approx.)] to the Petitioner till the assessment proceedings are completed and thereafter the refund shall be dealt with in accordance with law. (iii) The Respondents are directed to complete the assessment as expeditiously as possible. The parties will be at liberty to apply to this Co....
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....en in favour of the Department in respect of these FDRs. 8. Mr. Arvind Datar and Mr. Tarun Gulati, learned Sr. Advs. for the petitioner submitted that a substantial amount of earnings is accumulated with the petitioner-company and it is not only under a moral obligation but also under a statutory obligation to declare the dividend and disburse the same to its shareholders. They further submitted that because of nonpayment of dividend, the company's share value is not getting its worth in the market, as the investors are hardly getting anything. 9. During the course of arguments, a chart was handed over with the initials of authorized signatory of the company who was also present in the Court. The same is taken on record. 10. Accord....
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....ch of the demands has either been stayed by the Appellate Authority or by this Court. 15. He argued that since at the time of granting interim order and staying the demand, this Court had not imposed any condition of depositing or even furnishing surety, the right of the petitioner-company to repatriate the legitimate money to its shareholders cannot be thwarted as prayed by the respondents' counsel. 16. Heard learned counsel for the parties and perused the previous order and record to the extent necessary. 17. It has been informed that since 2021, the petitioner-company has not been able to repatriate dividend to its foreign investors and shareholders. It is also true that a demand of about Rs.4,000Crores is pending against the pe....
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....on of dividend are already permitted. According to us, since the demand has been crystallized and stayed, unabated embargo on the repatriation of the amount will be contrary to the petitioner's right so also the rights of its shareholders. 22. We see no reason to continue such bar for indefinite period. However, since an Assessment Order has been passed, we deem it appropriate to balance the equity and therefore, order that the petitioner-company shall be allowed to repatriate dividend to its [foreign investors and shareholders] by declaring and paying the amount of dividend in accordance with law, subject of course to, the guidelines in relation to foreign remittance and deduction of tax at source. 23. However, once the dividend is d....