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

[Satbir singh wahi]

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

Receipt of shares without consideration treated as taxable income despite subsequent return and pending restoration proceedings.
Assessment treats unpaid-acquisition of shares by a director at fair market value as a taxable receipt under the provision addressing transfer/receipt of property without consideration; the taxpayer argues payment was deferred, shares have been returned by lok adalat, and restoration proceedings before the company law tribunal are pending, challenging the characterization and timing of the tax assessment and the validity of reassessment proceedings.