https://www.taxtmi.com/caselaws?id=446961 The ITAT Delhi dismissed the Revenue's appeal challenging deletion of addition under Section 56(2)(viib) for excess share premium. The assessee company issued shares at premium to its existing 51% shareholder. The CIT(A) deleted the addition, which was upheld by ITAT. The Tribunal held that deeming provisions of Section 56(2)(viib) ordinarily don't apply when shares are allotted to existing shareholders. The assessee provided a valuation report showing fair market value of Rs. 14.815 per share, matching the issue price, thus supporting the premium charged. The premium was negligible and charged to an existing shareholder with pre-existing rights. en-us Wed, 13 Dec 2023 00:00:00 +0530 Mon, 08 Jun 2026 12:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446961 The ITAT Delhi dismissed the Revenue's appeal challenging deletion of addition under Section 56(2)(viib) for excess share premium. The assessee company issued shares at premium to its existing 51% shareholder. The CIT(A) deleted the addition, which was upheld by ITAT. The Tribunal held that deeming provisions of Section 56(2)(viib) ordinarily don't apply when shares are allotted to existing shareholders. The assessee provided a valuation report showing fair market value of Rs. 14.815 per share, matching the issue price, thus supporting the premium charged. The premium was negligible and charged to an existing shareholder with pre-existing rights. Case-Laws Income Tax Wed, 13 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446961