shares transfer u/s 56(2)(vi)(c)

[satbir singhwahi]

Sir,

Shares of closely held company were purchased by director at fmv, but consideration was not paid . So now local court has ordered to return shares.Further application pending at company law tribunal to restore back shares to original allotees.

The issue is with income tax , Assessing Officer is charging income u/s 56(2)(vi)(c).pls guide.

AI Summary

Director Ordered to Return Unpaid Shares; Tax Implications Under Section 56(2)(vi)(c) Pending Tribunal Review A director purchased shares of a closely held company at fair market value (FMV) but did not pay for them, leading a local court to order the return of the shares. An application is pending at the company law tribunal to restore the shares to the original allottees. The issue arises with the Income Tax Department, where the Assessing Officer is charging income under section 56(2)(vi)(c). The case was also brought before Lok Adalat, resulting in the shares being returned to the original shareholders. Guidance is sought on the tax implications and ongoing tribunal proceedings.