Admissibility of electronic evidence bars undervaluation demands where printouts, retracted statements and no cross-examination leave the case unprove...
Limitation in oppression and mismanagement proceedings: prior knowledge of removal and dilution barred the challenge, with valuation directions upheld...
Conversion of loan into share capital attracts provisions of Section 56(2)(viib) of the Income Tax Act. The term 'consideration' used in the section has wide implications, including non-monetary transactions. Conversion of loan into equity does not exempt the assessee from Section 56(2)(viib). The fair market value (FMV) of shares must be determined using prescribed valuation methods like discounted cash flow or net asset value consistently. Significant fluctuations in share premium within a short period without justification indicate undervaluation, attracting addition u/s 56(2)(viib) for excess premium over FMV. The assessee's contentions regarding non-applicability of Section 56(2)(viib) and lack of valuation rules were rejected. The Appellate Tribunal upheld the addition made u/s 56(2)(viib) for excess share premium over FMV.
Conversion of loan into share capital attracts provisions of Section 56(2)(viib) of the Income Tax Act. The term 'consideration' used in the section has wide implications, including non-monetary transactions. Conversion of loan into equity does not exempt the assessee from Section 56(2)(viib). The fair market value (FMV) of shares must be determined using prescribed valuation methods like discounted cash flow or net asset value consistently. Significant fluctuations in share premium within a short period without justification indicate undervaluation, attracting addition u/s 56(2)(viib) for excess premium over FMV. The assessee's contentions regarding non-applicability of Section 56(2)(viib) and lack of valuation rules were rejected. The Appellate Tribunal upheld the addition made u/s 56(2)(viib) for excess share premium over FMV.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4817 
Join Channel 
