Transfer pricing comparability requires functional alignment, reliable financial data, and careful review of working capital and receivables adjustmen...
Transfer pricing rules require benchmarking corporate guarantees and associated-enterprise advances, while invalid domestic-transaction adjustments ca...
Prospective sugar export prohibition required registered letters of credit; private contracts and export quotas created no enforceable continuation ri...
Retroactive interim-moratorium exclusion permits protective asset disclosure and preservation measures against personal guarantors pending arbitration...
The ITAT Delhi held that the addition u/s 56(2)(vii)(c) for bonus shares received was not applicable as the overall wealth of a shareholder post or pre-bonus remains the same. The Tribunal emphasized that the provisions of section 56(2)(vii)(c) were not attracted in cases of bonus shares as there is no transfer of property to shareholders. The Tribunal referred to a similar case involving the wife of the assessee where the addition was made on identical facts, and held that the AO's invocation of the provision was incorrect. The Tribunal dismissed the revenue's appeal, stating that the money remains with the company in cases of bonus shares and no double benefit is derived by the assessee.
The ITAT Delhi held that the addition u/s 56(2)(vii)(c) for bonus shares received was not applicable as the overall wealth of a shareholder post or pre-bonus remains the same. The Tribunal emphasized that the provisions of section 56(2)(vii)(c) were not attracted in cases of bonus shares as there is no transfer of property to shareholders. The Tribunal referred to a similar case involving the wife of the assessee where the addition was made on identical facts, and held that the AO's invocation of the provision was incorrect. The Tribunal dismissed the revenue's appeal, stating that the money remains with the company in cases of bonus shares and no double benefit is derived by the assessee.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4782
Join Channel
TaxTMI 
