https://www.taxtmi.com/caselaws?id=449387 ITAT Delhi dismissed Revenue's appeal regarding share premium addition under Section 56(2)(viib). AO rejected assessee's DCF valuation method, applied Net Asset Liability Method per Rule 11UA, and concluded premium was unjustified. CIT(A) held Section 56(2)(viib) provisions inapplicable. ITAT upheld CIT(A)'s decision, noting deeming provisions don't apply when shares issued to existing shareholders at premium supported by DCF valuation. Since allotment was to existing shareholder with pre-existing rights, the deeming provision's purpose wasn't achieved, making the addition unsustainable. en-us Thu, 08 Feb 2024 00:00:00 +0530 Sat, 10 Feb 2024 13:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449387 ITAT Delhi dismissed Revenue's appeal regarding share premium addition under Section 56(2)(viib). AO rejected assessee's DCF valuation method, applied Net Asset Liability Method per Rule 11UA, and concluded premium was unjustified. CIT(A) held Section 56(2)(viib) provisions inapplicable. ITAT upheld CIT(A)'s decision, noting deeming provisions don't apply when shares issued to existing shareholders at premium supported by DCF valuation. Since allotment was to existing shareholder with pre-existing rights, the deeming provision's purpose wasn't achieved, making the addition unsustainable. Case-Laws Income Tax Thu, 08 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449387