Blueblood Ventures vs Deputy Commissioner of Income Tax

Quick Summary

Blueblood Ventures Limited challenged a garnishee notice issued by the Deputy Commissioner of Income Tax. The company argued that it had already settled its debt to Shridham Distributors Private Limited by transferring Zero Coupon Optionally Convertible Debentures. Despite this, the revenue department issued the notice demanding payment. The High Court considered the case and the petitioner's claim that no debt was owed as of the notice date.

Court :
Delhi High Court

Brief :
It is the petitioner’s case that it owed monies to an entity, going by the name, Shridham Distributors Private Limited [in short 'SDPL']. According to the petitioner, the debt owed to SDPL was defrayed, by transferring Zero Coupon Optionally Convertible Debentures [in short ‘ZOCD’] of another entity, namely Devoted Construction Limited, amounting to Rs.21,37,00,000/-. This transaction, the petitioner avers, was completed on 28.03.2019.

Citation :
W.P.(C) 5460/2021

Daily Limit Reached