https://www.taxtmi.com/highlights?id=83687 Additions u/s 56(1) on account of share premium received by the assessee through allotment of shares to non-resident companies. The Tribunal observed that the transfer pricing adjustment made in the import price of equipment purchased from an associated enterprise was deleted in the earlier year, rendering the addition u/s 56(1) unsustainable. Furthermore, for assessments u/ss 153A/153C, post-search inquiries cannot form the basis, and the Assessing Officer cannot substitute their judgment over business decisions. Section 56(1) cannot be invoked to tax share premium, which is a capital receipt, as upheld by the Supreme Court and CBDT instructions. Consequently, the Tribunal dismissed the Revenue's appeal for both assessment years. en-us Thu, 05 Dec 2024 08:37:21 +0530 Thu, 05 Dec 2024 08:37:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=83687 Additions u/s 56(1) on account of share premium received by the assessee through allotment of shares to non-resident companies. The Tribunal observed that the transfer pricing adjustment made in the import price of equipment purchased from an associated enterprise was deleted in the earlier year, rendering the addition u/s 56(1) unsustainable. Furthermore, for assessments u/ss 153A/153C, post-search inquiries cannot form the basis, and the Assessing Officer cannot substitute their judgment over business decisions. Section 56(1) cannot be invoked to tax share premium, which is a capital receipt, as upheld by the Supreme Court and CBDT instructions. Consequently, the Tribunal dismissed the Revenue's appeal for both assessment years. Highlights Income Tax Thu, 05 Dec 2024 08:37:21 +0530 https://www.taxtmi.com/highlights?id=83687