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2014 (4) TMI 480 - HC - Income TaxStay application - Coercive steps to recover the disputed tax by the Revenue – Held that:- The transaction is of a gift which is a capital receipt in the hands of the assessee and therefore it cannot be said to be a case of any benefit or perquisite arising from business –no direct nexus could be established by any tangible material brought on record by the CIT (A) - Simply because both the donor and the donee happened to belong to the same group cannot ipso facto establish that they have any business dealings - it is a case of a valid gift which is to be treated as capital receipt in the hands of the assessee, in the absence of any specific provision taxing a Gift as a deemed business income, provisions of sec. 28(iv) cannot be applied on the facts of the case - The transaction involved is nothing but a Gift and thus it is a capital receipt not taxable under the provisions of the Act. The Assessee has more than just a strong prima-facie case for a stay – the assessee held 1.59% and 1.44% of the equity shares of UPL & UEL respectively - After the transfer the assessee holds 21.35% and 47.88% of the equity shares in UPL & UEL respectively - A refusal to grant a stay would in all probability entail a sale of the shares to meet the demand – thus, partial stay granted to the assessee.
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