ITAT refuses to stay tax demand on former owner of Raw Pressery brand

Rs 123 crore of tax demanded on shares sold for huge premium to actress Jacqueline Fernandes, Mauritius-based entities

An income tax appellate panel has refused to grant a stay on Rs 123 crore of taxes demanded by the authorities on share transfer by a fruit juice start-up to Mauritius based entities and actress Jacqueline Fernandes for huge premiums.

The case relates to the start-up, Raykan Beverages, that used to sell fruit juices under the brand of "Raw Pressery". While the company's loses increased day by day from Rs 25.72 crore to Rs 48.01 crore during the financial years 2016-17 and 2017-18, it issued shares to those cited above among others at a huge premium ranging from Rs 2,401.41