Fair-rent assessment requires consideration of lease terms, valuation principles and prevailing market rent; the certificate was quashed for fresh rev...
Document Identification Number compliance is satisfied when electronically communicated orders are promptly authenticated through a correctly identifi...
Industrial shrimp-feed machinery classification follows its commercial function, placing integrated production plants under the specific industrial fo...
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.
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