https://www.taxtmi.com/caselaws?id=431576 The Revenue's appeal challenging the deletion of an addition under Section 56(2)(viia) of the Income Tax Act was allowed by the ITAT. The ITAT determined that the provision applies when a company receives shares from another entity, not when it buys back and cancels its own shares. The case was remanded to the AO to verify the extinguishment of shares by reducing the paid-up capital. The decision aligned with a previous ruling by the ITAT Mumbai. en-us Wed, 14 Dec 2022 00:00:00 +0530 Thu, 15 Dec 2022 10:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431576 The Revenue's appeal challenging the deletion of an addition under Section 56(2)(viia) of the Income Tax Act was allowed by the ITAT. The ITAT determined that the provision applies when a company receives shares from another entity, not when it buys back and cancels its own shares. The case was remanded to the AO to verify the extinguishment of shares by reducing the paid-up capital. The decision aligned with a previous ruling by the ITAT Mumbai. Case-Laws Income Tax Wed, 14 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431576