Videocon-Datacom deal under tax scanner

The income tax department is now probing into a deal between Videocon Group and Datacom Solutions after the latter was allotted 2G licences in 21 circles for Rs 1,507 crores in 2008. Videocon Telecommunications was originally incorporated as Datacom Solutions, a group company of Himachal Futuristic Corporation Limited (HFCL). Later, two other group companies of HFCL, namely Jumbo Techno Service and Oswal Chemicals and Fertiliser, invested Rs 150 crores in Datacom Solutions. Videocon Group entered by purchasing shares from Jumbo Techno Services.

The tax department is examining the tax implications of the post-allotment of Unified Access Service Licence shares, which were issued to Videocon Group companies at a face value of Rs 10 per share. According to an income tax department presentation, Videocon Group also infused fresh funds amounting to Rs 1,540.22 crores.

Source: The Economic Times