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Certificate-of-origin verification procedure governs preferential customs benefits; denial without retroactive verification was set aside with consequ...
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Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
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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