Closely held company scrutinized u/s 56(2)(viib) for issuing shares at inflated value to avoid taxes.

Closely held company scrutinized u/s 56(2)(viib) for issuing shares at inflated value to avoid taxes. https://www.taxtmi.com/highlights?id=57123 Addition u/s 56(2)(viib) - Share Capital - excessive Share premium - closely held company - Rule 11UA - Assessee has failed to explain and justify issue of preference shares with a face value of ₹ 10,000/- per share when the fair market value of the shares of the company is ₹ -4.73 per share. The reasons given by the Assessing Officer to treat the transaction as a colurable device to circumvent the provisions of section 56(2)(viib) of the Act, appears to be on sound footing. - AT en-us Thu, 11 Mar 2021 12:22:33 +0530 Thu, 11 Mar 2021 12:22:33 +0530 TaxTMI RSS Generator Closely held company scrutinized u/s 56(2)(viib) for issuing shares at inflated value to avoid taxes. https://www.taxtmi.com/highlights?id=57123 Addition u/s 56(2)(viib) - Share Capital - excessive Share premium - closely held company - Rule 11UA - Assessee has failed to explain and justify issue of preference shares with a face value of ₹ 10,000/- per share when the fair market value of the shares of the company is ₹ -4.73 per share. The reasons given by the Assessing Officer to treat the transaction as a colurable device to circumvent the provisions of section 56(2)(viib) of the Act, appears to be on sound footing. - AT Highlights Income Tax Thu, 11 Mar 2021 12:22:33 +0530 https://www.taxtmi.com/highlights?id=57123