IN RE: DEERE & COMPANY Vs. STATE

JUDGEMENT

(1.) THE applicant, Deere & Co., USA, is a foreign company incorporated under the laws of USA. It has worldwide subsidiaries. It provides advanced products and services for agriculture, forestry, construction, lawn and turf care, landscaping and irrigation. The Deere Group also provides financial services worldwide and manufactures and markets engines used in heavy equipments. John Deere India (P) Ltd. (JDIPL) is a company incorporated in India and is a subsidiary of the applicant. It is engaged in manufacture of tractors and provides services in the field of water solutions, crop solutions, information technology and information technology enabled services. The applicant holds 344,857,343 equity shares of JDIPL (representing 99.99 per cent of the paid -up share capital) and the balance 10 shares are jointly owned by the applicant and Mr. Klaus Ramsauer.

(2.) BASED on the facts and circumstances of the case, since the transfer of shares by the applicant to JD Asia is without consideration, whether the provisions of s. 92 to s. 92F of the IT Act relating to transfer pricing would be applicable (this question is refrained at the time of hearing) ?

(3.) BASED on the facts and circumstances of the case, if the transfer of shares of JDIPL is not taxable in India, whether the applicant is required to file any return of income under s. 139 of the IT Act ?