Income Tax department has informed the Bombay High Court
that Twinstar Holding Ltd, which controls a 54-per cent
stake in Sterlite Industries Ltd (SIL), has to pay Rs
267.50-crore income tax-arrears to the department.
his affidavit filed before the court, I-T assistant
commissioner J M Kadrekar said Twinstar Holding held
100-per cent shares in three investment companies
Dwarkaprasad Anilkumar Investment Pvt Ltd, Pravin Naveen
Investment and Trading Company Ltd, and Sterlite Copper
Rolling Mills Pvt Ltd.
I-T affidavit said Dwarkaprasad Anilkumar Investment
owes Rs 35. 70 crore, Pravin Navin Investment owes Rs
163.60 crore while Sterlite Copper Rolling Mills Rs
24.20 crore to the department.
search action under section 132 was conducted on the
Sterlite group on 8 December 1999 and all these investment
companies which are assessed in the charge of commissioner
of I-T, 3, Mumbai, were also covered by the action.
The order of block assessment was passed in the case
of these three investment companies and Rs 223.50 crore
was determined to be payable by them," said the
department. The interest under section 220(2) and penalty
will further increase the amount by around Rs 267.50
department states that if the demerger scheme is approved
by the court, the shares attached by the I-T department
as the revenue of SIL may undergo substantial devaluation
and ultimately will have an effect on the revenue of
the states. Due to the devaluation, the market price
of the shares would be reduced and the very purpose
of attaching the shares towards the dues of the IT would
three investment companies went into voluntary liquidation
and the shares of SIL and Madras Aluminium Company held
by the investment companies were transmitted to Twinstar
Holdings. On completion of block assessment proceedings,
three voluntarily-liquidated investment companies, their
directors and liquidator have refused to pay the demand
raised pursuant to the order of block assessment on
the pretext that all the assets of the investment companies
have been transferred to the holding company, Twinstar
Holdings," the department said.
added that the department got the knowledge of the demat
account in Deutsche Bank of Twinstar Holdings wherein
the share of the investment companies were parked.
in the interest of the revenue the I-T department has
attached the shares by exercising the power under section
28 and section 226(5) of the IT Act, 1961. The said
attachment was challenged by Twinstar Holding in the
Bombay High Court and the writ petition came to be dismissed
by an order dated 30 October 2002.
Star Holding had moved the Supreme Court, and the apex
court in a special leave petition (SLP) No 2351 of 2002
refused interim relief, but directed the department
not to take further steps till the disposal of the SLP.
The SLP is pending before the Supreme Court.