Assume that you are a member of the Board of Directors of HCL Technologies. Draft a circular on behalf of the Board, informing
the employees regarding the new management policy that each employee should devote two hours every month for social service.
Answers
Answer:
2) Construct ∆ Such that , AB+BC+CA=11.3cm, m∠ = 700 &
m∠ = 600
( Draw rough figure & explanation is compulsory )
Answer:
1. IT(SS)A No. 411/Del/2004 is an appeal by the assessee and IT(SS)A No. 45/Del/2005 is an appeal by the Revenue. Both these appeals arise out of the order of learned CIT(A)-III, New Delhi dt. 30th Nov., 2004. They are being disposed of by this consolidated order.
2. First we shall take up the assessee's appeal, i.e., IT(SS)A No. 411/Del/2004 for consideration. The facts and circumstances giving rise to the appeal by the assessee are as follows. The assessee is a company. M/s HCL Corporation Ltd., (hereinafter referred to as 'M/s HCLCL'), M/s Shiv Nadar Investment (P) Ltd. (hereinafter referred to as 'M/s SNIPL') and the assessee-company were promoters of a company by name, M/s HCL Consulting Ltd. The main objects of these three companies were making investments in various companies. The investments are in the form of contribution to share capital of various companies. They promote companies and hold shares of companies promoted. The shares are held by these companies in order to have power to control and manage the companies, which they promote. The assessee, M/s HCLCL and M/s SNIPL sold 41,00,000, 14,50,000 and 14,50,000 shares respectively of M/s HCL Consulting Ltd. to one overseas corporate body (OCB), i.e., M/s Wintech Investment (P) Ltd., Mauritius (hereinafter referred to as 'M/s WIPL') at Rs. 50 per share. All the three transactions took place in June, 1999. The three companies passed a Board Resolution all dt. 3rd June, 1999 offering shares held by them in the capital of M/s HCL Consulting Ltd., to M/s WIPL. M/s WIPL by Board resolution dt. 4th June, 1999 agreed to buy the shares in question subject to the required Governmental approvals. The RBI granted in principle approval on 23rd Sept., 1999 and final approval on 23rd Oct., 1999. The assessee, M/s SNIPL and M/s HCLCL received the sale proceeds on 13th Oct., 1999, 14th Oct., 1999 and 12th Oct., 1999 respectively in the form of remittances in foreign exchange duly evidenced by the Foreign Exchange Remittance Certificates. Therefore, there was a completed sale of the shares in the previous year relevant to asst. yr. 2000-01, i.e., financial year 1999-2000, by the assessee, M/s SNIPL and M/s HCLCL respectively. Prior to this sale, M/s WIPL was holding 20,00,000 shares of M/s HCL Consulting Ltd. and after acquiring 70,00,000 shares from the aforesaid three companies, it sold 4,15,000 shares leaving with it 85,85,000 shares of M/s HCL Consulting Ltd. of the face value of Rs. 10 per share. Subsequently, M/s HCL Consulting Ltd. capitalized part of its free reserves/profit by issuing bonus shares. Each shareholder was issued one equity share of Rs. 10 as bonus for every two shares held in M/s HCL Consulting Ltd. Thus M/s WIPL held 1,28,77,500. shares of M/s HCL Consulting Ltd. after such issue of bonus shares. The share capital of M/s HCL Consulting Ltd. was consolidated and shares of the face value of Rs. 10 each were sub-divided into shares of face value of Rs. 4 each in November, 1999. Accordingly, 1,28,77,500 shares of the face value of Rs. 10 each held by M/s WIPL became 3,21,93,750 shares of the face value of Rs. 4 each. Such consolidation and sub-division happened in the month of November, 1999. This holding by M/s WIPL in M/s HCL Consulting Ltd. represented a controlling interest in the said company. Meanwhile, the name of M/s HCL Consulting Ltd. was changed to M/s HCL Technologies Ltd. on 6th Oct., 1999 and in this new name, the said company came up with an Initial Public Offer (IPO) of shares in the month of November, 1999.
3. The assessee filed its return of income for the asst. yr. 2000-01 on 30th Nov., 2000, A copy of the acknowledgement of filing return of income for the asst. yr. 2000-01 on 30th Nov., 2000 is placed at p. 358 of the assessee's paper book. A copy of computation of total income is at p. 359 of assessee's paper book. In the. computation of income under the head long-term capital gain the assessee has shown to have made a gain as per Annex. 1 attached to the statement of taxable income. In Annex. 1, the assessee has reflected sale of 14,50,000 shares of M/s HCL Consulting Ltd. A capital loss (long-term) on sale of these shares has been reflected in Annex. 1. This long-term capital loss has however been set off against the capital gain on sale of certain other shares and the net capital gain has been shown in the statement of taxable income under the head "long-term capital gains". The return of income so filed by the assessee was subjected to an assessment by the AO and an order dt. 27th March, 2003 was passed by the AO under Section 143(3) of the Act. A copy of order of assessment is at pp. 362 to 372 of assessee's paper boo
Explanation: