Coffee Day goes cold and stale

Coffee Day Enterprises is today deep in the red, going down over 5.5% at Rs.266. Its 52-week low stands at Rs.237.10.

The Income-Tax (IT) department attached a portion of shares held by V.G. Siddhartha and Coffee Day Enterprises Ltd in IT firm Mindtree over a potential tax demand.

The IT department prohibited for transfer or charge of 22.2 lakh equity shares of Coffee Day Enterprises Ltd, and 52.7 lakh shares held by Siddhartha. The order will be applicable for six months from the date of the order i.e. January 25, 2019.

In response to this, the company said, “the company would like to clarify that in response to notices u/s 148 & 153A of the Income tax, the Promoter and the Company have filed required revised returns. Further there is no tax liability payable by the company and its subsidiaries as per the revised returns filled. The promoter has discharged all the tax liability along with the revised returns. Further there is no undisputed tax liability for the Promoter and the Company. The required action will be taken to release these shares in the next few days.”

As at 31st Dec 2018, Siddhartha held 54.69 lakh shares or 3.3% stake in Mindtree and Coffee Day Enterprises Ltd had more than 1.74 crore shares or 10.63% stake.