Tax Tribunal Upholds Addition of Rs. 1.41 Crore as Share Premium u/s 56(2)(viib) for A.Y. 2014-15.

The Tribunal dismissed the assessee's appeal, affirming the CIT(A)'s order to add Rs. 1,41,11,192/- as share premium under section 56(2)(viib) of the I.T. Act for A.Y. 2014-15. The Tribunal upheld that the share premium exceeded the auditor's valuation and that loan conversion into equity shares does not exempt the assessee from the provisions of section 56(2)(viib). No compelling evidence or precedent was provided to challenge the tax authorities' decision.

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Issues:
Challenge to addition of share premium under section 56(2)(viib) of the I.T. Act for A.Y. 2014-15.

Analysis:
The appeal was filed by the assessee against the order of the CIT(A) confirming the addition of Rs. 1,41,11,192/- as share premium under section 56(2)(viib) of the I.T. Act. Despite multiple adjournments, the assessee did not appear, leading to an ex-parte disposal of the appeal. The Assessing Officer had assessed the excess share premium amount based on the valuation report filed by the assessee, which valued shares at Rs. 660/- per share. The CIT(A) rejected the assessee's contention that the conversion of loans into equity shares with share premium should not fall under section 56(2)(viib) of the Act, citing a precedent from the Kolkata Bench of the ITAT. The Tribunal upheld the CIT(A)'s decision, emphasizing that the share premium exceeded the auditor's valuation, and the conversion of loans into equity shares does not exempt the assessee from the provisions of section 56(2)(viib) of the Act. No contrary decision or distinguishing fact was presented to warrant interference with the tax authorities' decision, leading to the dismissal of the assessee's appeal.

In conclusion, the Tribunal affirmed the order passed by the CIT(A) and dismissed the appeal filed by the assessee.

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