Transfer of shares by two Non-resident of a foreign company

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While deciding the appeal (Writ Appeal 3400-2011 decided on June 13, 2011) filed by the appellants M/s. Richter Holdings Limited, Cyprus with respect to Order Passed by Honâ€™ble Single Judge Bench of Karnataka High Court, Bangalore, the Honâ€™ble Division Bench of the Court has rejected the appeal of appellants to set aside the order passed by Honâ€™ble Single Judge (Writ Petition No. 7716 on March 23, 2011) in the matter and held similar views that â€œA question of Jurisdictional fact may be decided by the Assessing Officer as a preliminary issue, and if at all the appellant feels aggrieved by the decision of the Assessing Officer, it can always take recourse to the High Court under Article 226 of the Constitution of India.â€ Conclusion: In terms of above judgment it emerges that Indian taxing authorities can look into transfer of shares by two non-residents of any foreign company. Note: It is important to note that appellants in the matter had only appealed to set aside the show cause notice issued by the assessing officer, thus whole matter has been decided in the context only, and no other relief was sought. #pdf

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