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2020 (1) TMI 1022 - AT - Income TaxAddition u/s 56(2)(vii) on account of alleged excess share premium - difference between the share premium received in excess of valuation as determined under Rule 11UA - prescribed method being DCF followed - HELD THAT:- As relying on M/S LALITHAA JEWELLERY MART PVT. LTD. VERSUS THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE – 1 (4) , CHENNAI. [2019 (8) TMI 400 - ITAT CHENNAI] and legislative intent behind insertion of section 56(2)(viib), I hold that addition made by AO on account of alleged excess share premium is unjustified when those very shares are sold in next financial year at much higher amount after proper due diligence, that to a non resident buyer and further there is no case of unaccounted money being brought in garb of stated share premium, hence, addition made u/s 56(2)(vii) of the Act is hereby deleted. - Decided in favour of assessee.
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