COMMISSIONER OF INCOME TAX Vs. VIVEK DOUGALL

JUDGEMENT

(1.) THE Revenue is aggrieved by an order dated 11th August, 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench D, in IT (SS) A No. 137/del/2002 relevant for the block period ending on 8th July, 1999.

(2.) THE Assessee is one of the promoters of M/s Atul Glass Industries limited (AGIL) and Maharashtra Glass and Agro Limited (MGAL ).

(3.) A French company called Sekruti Saint Gobain (SSB) which was also in the same business as AGIL and MGAL, that is, safety glazing of automobile windshields had the intention of becoming a major supplier in India. Accordingly, AGIL, MGAL and SSB decided to join forces to meet the anticipated demand for laminated windshields and a joint venture agreement was entered into between them on 24th February, 1994. As per the joint venture agreement, SSB was to be allotted certain preferential shares in AGIL and MGAL.