https://www.taxtmi.com/caselaws?id=768668 The ITAT Rajkot dismissed the revenue's appeal challenging deletion of addition made under Section 56(2)(vii)(c)(ii) for excess value transferred to beneficiary. The tribunal held that this provision applies only to individuals and HUFs, not public limited companies. In amalgamation cases, new share allotment does not constitute transfer of shares, making Section 56(2)(vii)(c) inapplicable. The court-approved amalgamation scheme with exchange ratio precludes questions of discounted share pricing. The tripartite arrangement between amalgamated company, amalgamating company, and shareholders differs from typical transfer scenarios, and such transfers are excluded under Section 47(vii). en-us Tue, 31 Dec 2024 00:00:00 +0530 Fri, 11 Apr 2025 08:40:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768668 The ITAT Rajkot dismissed the revenue's appeal challenging deletion of addition made under Section 56(2)(vii)(c)(ii) for excess value transferred to beneficiary. The tribunal held that this provision applies only to individuals and HUFs, not public limited companies. In amalgamation cases, new share allotment does not constitute transfer of shares, making Section 56(2)(vii)(c) inapplicable. The court-approved amalgamation scheme with exchange ratio precludes questions of discounted share pricing. The tripartite arrangement between amalgamated company, amalgamating company, and shareholders differs from typical transfer scenarios, and such transfers are excluded under Section 47(vii). Case-Laws Income Tax Tue, 31 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768668