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2018 (10) TMI 1095 - AT - Income TaxAdditions u/s 56(2)(viib) - income from other sources - receipt of share application money - amount received from one shareholder - benefit passed on to other shareholder - transactions involving family arrangement with respect to transfer of shares - lifting of corporate veil - Held that:- In the case of the assessee company also the corporate veil is required to be lifted and thereafter the transaction has to be viewed in the light of the relevant provisions of the Act. Provisions of Section 56(2)(viib) of the Act, cannot be invoked in the case of the assessee company because by virtue of cash being brought into the assessee company by Mrs. Sasikala Raghupathy for allotment of equity shares with unrealistic premium the benefit has only passed on to her daughter Mrs. Vani Raghupathy and there is no scope in the Act to tax when cash or asset is transferred by a mother to her daughter. Hence we hereby direct the Ld.AO to delete the addition made by invoking the provisions of Section 56(2)(viib) of the Act in the case of the assessee company. - Decided in favour of assessee.
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