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2019 (5) TMI 952 - HC - Income TaxIncome from other sources u/s 56(2)(viib) - taxability of shares premium - determining the Fair Market Value of the Shares - amount brought into the Assessee Company by the mother for allotment of Equity Shares in her favour with a very high premium - gift - HELD THAT:- Assessing authority was required to undertake the exercise of fact finding by determining the Fair Market Value of the Shares in question as required in the Explanation to Section 56 as quoted above. That exercise not having been done, the matter deserves to be remanded back to the learned Assessing Authority for undertaking the said fact finding exercise. The Assessee will be free to raise all factual and legal contentions including the point about the said amount being treated as 'gift' from mother to daughter. The Assessee may also seek necessary clarification from the Central Board of Direct Taxes on administrative side. Therefore, without expressing any opinion on the merits of the case and answering the questions sought to be raised in the present Appeal under Section 260A of the Act, we dispose of the Appeal filed by the Revenue by remitting the matter back to the Assessing Authority.
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