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2023 (7) TMI 1158 - AT - Income TaxAddition towards share premium u/s. 56(2)(viib) - consideration for issue of shares that exceeds the face value of such shares - consideration received for said shares which exceeds the fair market of the shares needs to be treated as income of the assessee - HELD THAT:- Assessee is part of M/s. RPP Infra Projects Ltd, who filed application before the Income-tax Settlement Commission, Chennai Benches and offered additional income towards investment with share capital of assessee company. The Income-tax Settlement Commission, Chennai Benches vide their order accepted application filed by the assessee and income disclosed therein and also allowed capitalization with respect of amount invested in M/s. Luncar Finance Pvt Ltd. From the above, it is very clear that addition made by the AO towards security premium in the hands of the assessee was already subjected to tax in the hands of M/s. RPP Infra Projects Ltd, which is evident from the order passed by the Income-tax Settlement Commission. Therefore, further addition towards very same income cannot be made in the hands of the assessee. CIT(A) rightly deleted addition - Decided against revenue.
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