https://www.taxtmi.com/caselaws?id=758277 The ITAT Chennai-AT ruled in favor of the assessee regarding an addition under Section 28(iv) for amounts credited to Capital Reserves from share allotment by an amalgamated company. The CIT(A) had deleted the addition, finding the amalgamation was not an adventure in trade but a capital account transaction. The ITAT upheld this decision, following precedent that benefits from amalgamation/merger are not revenue in nature and don't constitute income. The tribunal confirmed that capital reserves from such transactions cannot be considered benefits accrued under Section 28(iv). The assessee's appeal was allowed. en-us Thu, 29 Aug 2024 00:00:00 +0530 Tue, 10 Sep 2024 11:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758277 The ITAT Chennai-AT ruled in favor of the assessee regarding an addition under Section 28(iv) for amounts credited to Capital Reserves from share allotment by an amalgamated company. The CIT(A) had deleted the addition, finding the amalgamation was not an adventure in trade but a capital account transaction. The ITAT upheld this decision, following precedent that benefits from amalgamation/merger are not revenue in nature and don't constitute income. The tribunal confirmed that capital reserves from such transactions cannot be considered benefits accrued under Section 28(iv). The assessee's appeal was allowed. Case-Laws Income Tax Thu, 29 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758277