9911796707
TMI Blog2022 (6) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to as 'the Act'], for the assessment year 2018-19. 2. The assessee has not paid any part of the tax and interest demands raised on the assessee. As learned counsel candidly submits, the assessee does not intend to pay or is in a position to pay any such demands even now. When asked whether the assessee has approached the revenue authorities below, learned counsel submits that the assessee has not moved the stay petition before any of the administrative officers after disposal of the first appeal, order on which is impugned in appeal before us, but, as case records indicate, the assessee had filed a petition, seeking blanket stay on demand during the pendency of the first appeal, before the learned Principal Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the outstanding dues at all. 3. The assessee before us is a private limited company, and it commenced its business, of manufacturing non-alcoholic beverages- mainly fruit juices in the brand name of 'raw pressery', on 22nd November 2013. While the losses incurred by the company increased day by day, from Rs 25.72 crores to Rs 48.01 crores during the financial years 2016-17 and 2017-18, the assessee has issued shares to certain entities, mainly Mauritius based entities, a resident director of the company and an Indian actress -namely Jacqueline Fernandes, at a huge premium between Rs 2,401.41 to Rs 2,786.26 on shares of Rs 100 each. Against this backdrop, the Assessing Officer began by probing the taxability of share premium under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the succeeding years, the assessee company continued to make huge losses, and was eventually sold for mere Rs 100 crores to Wingreens Farms. He also expressed the suspicion that the money which has come from the Mauritian companies is nothing but assessee's fund and recommended action under the laws meant for preventing such unscrupulous transactions. As against a returned loss of Rs 46,14,31,723, the assessment was thus framed at Rs 115,56,95,385. Aggrieved, the assessee carried the matter in appeal before the CIT(A) but without any success. The assessee has also filed this stay petition seeking a stay on collection/recovery of the disputed demands till the appeal is disposed of. 4. We have heard the rival contentions, perused the mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y petitions, prima facie the genuineness, a necessary ingredient of tests envisaged under section 68, is far from established. Additionally, so far as domestic investors are concerned, as of the stage of the hearing of this stay petition, there is no material whatsoever to show the reasonableness of the share premium received vis-à-vis the fair market value of shares. The taxability under section 56(2)(vii) is thus far from even seriously challenged. While the assessee has the liberty to make detailed arguments, and also to bring to our notice any material demolishing these prima facie observations, as and when the occasion to do so arises, as the things are before us at present, we do not think it is a fit case for even the grant of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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