Defined public benefit can retain charitable character; registration renewal requires examining genuine activities and legal compliance, not surplus a...
Capital reduction is distinct from share buy-back, preventing buy-back tax; restructuring interest and related business deductions also survive scruti...
Transfer pricing and tax deductions upheld on established principles, while employee contributions and warranty provisions returned for fresh examinat...
Captive transfer pricing relies on industrial consumer tariffs, while genuine quotations can benchmark effluent treatment transfers under the Other Me...
Specific tariff classification for ophthalmic instruments and extended limitation principles determine the treatment of duty demands, confiscation, an...
The ITAT held that u/s 56(2)(viib), addition on premium amount in excess of FMV for issuing Optional Convertible Preference Shares to holding company is unsustainable. The NAV method for valuation is valid only for equity shares, not OCPS. FMV based on equity shares for conversion is justified. Allotting shares to 100% holding company benefits existing shareholders, defeating the purpose of deeming provision u/s 56(2)(viib). CIT(A)'s decision is upheld as it aligns with law and facts. Revenue's appeal is dismissed.
The ITAT held that u/s 56(2)(viib), addition on premium amount in excess of FMV for issuing Optional Convertible Preference Shares to holding company is unsustainable. The NAV method for valuation is valid only for equity shares, not OCPS. FMV based on equity shares for conversion is justified. Allotting shares to 100% holding company benefits existing shareholders, defeating the purpose of deeming provision u/s 56(2)(viib). CIT(A)'s decision is upheld as it aligns with law and facts. Revenue's appeal is dismissed.
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