https://www.taxtmi.com/caselaws?id=406476 Section 56(2)(viib) applies only where a closely held company receives consideration for issue of shares in excess of face value, targeting unjustified share premium and unaccounted money. In a court-approved amalgamation, where the amalgamated company issues shares at face value to the shareholders of the amalgamating company, no share premium is received and the balancing capital reserve arising from the scheme cannot be treated as taxable income under the deeming fiction. The provision cannot be extended beyond its object to tax notional excess generated by amalgamation accounting. The addition was therefore not sustainable in law. en-us Tue, 13 Apr 2021 00:00:00 +0530 Thu, 05 May 2022 11:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=406476 Section 56(2)(viib) applies only where a closely held company receives consideration for issue of shares in excess of face value, targeting unjustified share premium and unaccounted money. In a court-approved amalgamation, where the amalgamated company issues shares at face value to the shareholders of the amalgamating company, no share premium is received and the balancing capital reserve arising from the scheme cannot be treated as taxable income under the deeming fiction. The provision cannot be extended beyond its object to tax notional excess generated by amalgamation accounting. The addition was therefore not sustainable in law. Case-Laws Income Tax Tue, 13 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=406476