https://www.taxtmi.com/caselaws?id=759758 The ITAT Ahmedabad quashed revision proceedings under section 263 initiated by PCIT against an assessee company. The AO had accepted the company's returned loss after proper inquiry regarding share allotment at face value of Rs. 10 without premium between holding and subsidiary companies. PCIT incorrectly invoked section 56(2)(viib) provisions, which apply when consideration received exceeds face value of shares issued. Since shares were allotted only at face value without premium, and the company was not a public company, section 56(2)(viib) was inapplicable. ITAT found no inadequate inquiry by AO and allowed the assessee's appeal. en-us Tue, 01 Oct 2024 00:00:00 +0530 Tue, 08 Oct 2024 07:36:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759758 The ITAT Ahmedabad quashed revision proceedings under section 263 initiated by PCIT against an assessee company. The AO had accepted the company's returned loss after proper inquiry regarding share allotment at face value of Rs. 10 without premium between holding and subsidiary companies. PCIT incorrectly invoked section 56(2)(viib) provisions, which apply when consideration received exceeds face value of shares issued. Since shares were allotted only at face value without premium, and the company was not a public company, section 56(2)(viib) was inapplicable. ITAT found no inadequate inquiry by AO and allowed the assessee's appeal. Case-Laws Income Tax Tue, 01 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759758