Addition u/s 56(2)(viib) - Share Capital - excessive Share ...

Closely held company scrutinized u/s 56(2)(viib) for issuing shares at inflated value to avoid taxes.

March 11, 2021

Case Laws Income Tax AT

Addition u/s 56(2)(viib) - Share Capital - excessive Share premium - closely held company - Rule 11UA - Assessee has failed to explain and justify issue of preference shares with a face value of ₹ 10,000/- per share when the fair market value of the shares of the company is ₹ -4.73 per share. The reasons given by the Assessing Officer to treat the transaction as a colurable device to circumvent the provisions of section 56(2)(viib) of the Act, appears to be on sound footing. - AT

View Source

← Previous Next →

Addition u/s 56(2)(viib) - Share Capital - excessive Share ...

Closely held company scrutinized u/s 56(2)(viib) for issuing shares at inflated value to avoid taxes.

March 11, 2021

Case Laws Income Tax AT

You may also like:

Section 56(2)(viib) deals with the consideration received by a company for issue of shares at a premium. The assessee company issued equity shares at a premium, which...

The Income Tax Appellate Tribunal (ITAT) examined the addition made u/s 56(2)(viib) for the difference between the market value and consideration received for shares...

Addition u/s 56(2)(viib) - valuation under Rule 11UA (2) - Even if preferential shares and equity shares are considered to be falling within the purview of Section...

Addition u/s. 56(2)(viib) in respect of share premium - The prime object of insertion of Sec. 56(2)(viib) was to tax excessive share premium received unjustifiably by...

Applicability of section 56(2)(viib) and valuation of shares in cases of Right Issues - Revision order u/s 263 - The Tribunal disagreed with the Pr. CIT's valuation of...

Addition u/s 56(2)(viib) - Thus the issue of shares at ‘face value’ by the amalgamated company (assessee) to the shareholders of amalgamating company in pursuance of...

Excess premium charged on issue of shares u/s.56(2)(viib) - The value adopted by the Assessing Officer under net asset value method even though a prescribed method does...

The ITAT held that u/s 56(2)(viib), addition on premium amount in excess of FMV for issuing Optional Convertible Preference Shares to holding company is unsustainable....

Addition u/s.56(2)(viib) - Determination of FMV of shares - Admittedly, provision of section 56(2)(viib) of the Act do not prescribe only one method for valuation of...

AO cannot interfere in assessee's chosen valuation method u/s 56(2)(viib). AO exceeded jurisdiction by rejecting DCF method and applying NAV method. Transaction between...

Addition u/s 56(2)(viib) - shares being issued at excessive rate - When shares are issued at a premium by a subsidiary to its holding company, based on a recognized...

Addition u/s 56(2)(viib) - excess premium collected on issue of equity shares from resident individuals - assessee is a recognized startup from DPIIT, Ministry of...

Assessee issued shares at fair market value computed as per Rule 11UA(2), but Assessing Officer (AO) and CIT(A) rejected valuation without justification. Statute...

The ITAT considered the issue of addition u/s 2(22)(b) r.w.s. 56(2)(viia) concerning the treatment of bonus shares received by the assessee. The AO treated the bonus...

tion u/s. 56(2)(viib) - Issue of additional shares at premium while splitting the existing shares - As observed by the Tribunal in its aforesaid order, such allotment of...

Quick Updates: