Non-applicability of section 56(2)(viib) for DPIIT-recognized startups halts related tax demands and prescribes assessment process. Consolidates CBDT guidance that DPIIT recognized startups with a filed Form No.2 are not subject to taxation of excess consideration as income under the equity premium rule; assessors must accept the assessee's contention in limited scrutiny, obtain supervisory approval before pursuing the issue in multi issue or non Form No.2 cases, and meet prescribed timelines. Past additions on this ground in earlier assessments should not be pressed on appeal where the declaration exists, related demands are not to be pursued absent appellate confirmation, and a Startup Cell is established for grievance redressal.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Non-applicability of section 56(2)(viib) for DPIIT-recognized startups halts related tax demands and prescribes assessment process.
Consolidates CBDT guidance that DPIIT recognized startups with a filed Form No.2 are not subject to taxation of excess consideration as income under the equity premium rule; assessors must accept the assessee's contention in limited scrutiny, obtain supervisory approval before pursuing the issue in multi issue or non Form No.2 cases, and meet prescribed timelines. Past additions on this ground in earlier assessments should not be pressed on appeal where the declaration exists, related demands are not to be pursued absent appellate confirmation, and a Startup Cell is established for grievance redressal.
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