Raw Pressery was acquired by Wingreens Farms in 2021 for just Rs 100 crore even as its was valued at Rs 500 crore in 2019. THE MUMBAI bench of the Income Tax Appellate Tribunal (ITAT) has refused to stay a Rs 123 crore tax demand against Raw Pressery, a cold pressed juice startup. The income tax (I-T) demand pertains to additions made by the department on issuance of shares by Raw Pressery to a few Mauritius-based companies and actor Jacqueline Fernandes at high premium, ranging from Rs 2,401 to Rs 2,786, on shares of Rs 100 each even as the company was making losses.
The I-T department has taxed the company under Section 56(2)(viib) and Section 68 of the Income Tax Act. In its order, the ITAT said the computation of high share premium is ‘devoid of any basis’ and there is ‘no reasonableness’ in share premium as compared to fair market value of shares. Raw Pressery was acquired by Wingreens Farms in 2021 for just Rs 100 crore even as its was valued at Rs 500 crore in 2019. “We do not think it is a fit case for even the grant of stay, leave aside the grant of a blanket stay, as is prayed for by the assessee (Raw Pressery),” said the ITAT order.
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