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| The Tax Publishers2019 TaxPub(DT) 4605 (Kol-Trib) INCOME TAX ACT, 1961
Section 56(2)(viib)
Since shares were applied in assessment year 2012-13 as per the terms and conditions settled in assessment year 2012-13, section 56(2)(viib) introduced from assessment year 2013-14, i.e., the year under consideration in the instant case be applied merely on the basis that shares were allotted in assessment year 2013-14.
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Income from other sources - Applicability of section 56(2)(viib) - Year of application v. year of allotment of shares -
Assessee issued and allotted 10,60,000 equity shares of Rs. 10 face value at a premium of Rs. 90 per share. AO noticed that as per report issued by Chartered Accountant FMV stood at Rs. 41.38. He required assessee to explain as to section 56(2)(viib) should not be invoked. Assessee stated that it issued shares in assessment year 2012-13 and received consideration during that year and applicability of section 56(2)(viib) did not arise as it came into force in assessment year 2013-14 only. AO rejected this on the ground that shares were allotted in assessment year 2013-14.Held: Since shares were applied in assessment year 2012-13 as per the terms and conditions settled in assessment year 2012-13, section 56(2)(viib) introduced from assessment year 2013-14, i.e., the year under consideration in the instant case could not be applied merely on the basis that shares were allotted in assessment year 2013-14.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 194C
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