https://www.taxtmi.com/caselaws?id=445863 ITAT Delhi ruled in favor of the assessee company regarding addition under section 56(2)(viib) for issuing preference shares at premium to its holding company. The tribunal held that the assessee, being a subsidiary of a public company, is deemed to be a public company under section 2(71) of the Companies Act, 2013. Therefore, section 56(2)(viib) provisions regarding companies where public are not substantially interested do not apply. The tribunal rejected Revenue's argument that the deeming provision was stretched beyond its intended purpose, emphasizing that statutory fiction must be carried to its logical conclusion. en-us Fri, 17 Nov 2023 00:00:00 +0530 Tue, 21 Nov 2023 08:33:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445863 ITAT Delhi ruled in favor of the assessee company regarding addition under section 56(2)(viib) for issuing preference shares at premium to its holding company. The tribunal held that the assessee, being a subsidiary of a public company, is deemed to be a public company under section 2(71) of the Companies Act, 2013. Therefore, section 56(2)(viib) provisions regarding companies where public are not substantially interested do not apply. The tribunal rejected Revenue's argument that the deeming provision was stretched beyond its intended purpose, emphasizing that statutory fiction must be carried to its logical conclusion. Case-Laws Income Tax Fri, 17 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445863