https://www.taxtmi.com/highlights?id=78496 The ITAT directed the AO to conduct a fresh assessment u/s 263 to determine the Fair Market Value (FMV) of shares issued u/s 56(2)(viib). Existing shareholders received substantial shares at a premium, with only a few new subscribers. Citing a precedent, it was found that taxing excessive premium on shares issued to existing shareholders is not applicable as no income accrues to them. The AO's actions were not erroneous or prejudicial to revenue. The Pr.CIT's revisional action lacked jurisdiction under Section 263, leading to the appeal being allowed, canceling the revisional order and restoring the AO's decision. en-us Fri, 14 Jun 2024 08:26:55 +0530 Fri, 14 Jun 2024 08:26:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=78496 The ITAT directed the AO to conduct a fresh assessment u/s 263 to determine the Fair Market Value (FMV) of shares issued u/s 56(2)(viib). Existing shareholders received substantial shares at a premium, with only a few new subscribers. Citing a precedent, it was found that taxing excessive premium on shares issued to existing shareholders is not applicable as no income accrues to them. The AO's actions were not erroneous or prejudicial to revenue. The Pr.CIT's revisional action lacked jurisdiction under Section 263, leading to the appeal being allowed, canceling the revisional order and restoring the AO's decision. Highlights Income Tax Fri, 14 Jun 2024 08:26:55 +0530 https://www.taxtmi.com/highlights?id=78496