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2021 (6) TMI 500 - AT - Income TaxAddition u/s 56 (2)(vii)(b) - assessee company is a deemed public limited company - shareholding pattern of the assessee company - DR contended that the CIT(A) has erred deleting the impugned addition made by the Assessing Officer in his regular assessment framed thereby holding that M/s NCC Infrastructure Holding Limited, qualified to be a public limited company(ies) merely because NCC Ltd (a listed company) held more than 40% of the former’s shareholding in the relevant previous year. HELD THAT:- We find no merit in Revenue’s foregoing arguments. The assessee has filed a detailed paper book before the Assessing Officer himself that section 56(2)(vii)(b) did not apply in view of sec.2(18) containing definition of a “company”. The Revenue’s technical argument that the CIT(A) has not offered any opportunity whilst entertaining the assessee’s argument to this effect goes against the records. The same stands rejected therefore. Whether assessee qualifies to be a company eligible for section 56 (2)(vii b)’s exemption since covered under the clinching legislative expression “where a company, not being a company in which the public are substantially interested” as per section 2(18)(b)(B)(c) of the Act since the said other company was a listed one holding more than 50% of its stake in the relevant previous year - We make it clear that the assessee had duly filed its shareholding chart before the CIT(A) (supra) whose correctness has nowhere been rebutted in Revenue’s pleadings in the instant appeal. Coupled with this, the CIT(A) has also placed reliance on coordinate bench’s decision (supra) adjudicating the very issue in assessee’s favour and against the department. We therefore find no reason to interfere with CIT(A)’s correct approach in deleting the impugned sec. 56(2)(vii b) addition in question - Decided against revenue.
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