https://www.taxtmi.com/caselaws?id=781935 ITAT Delhi (AT) allowed the assessee's appeal, holding that the share capital reduction amounted to a transfer taxable, if at all, under capital gains provisions and not under section 56(2)(viib). As the shares were acquired in 2013 through a secondary purchase, duly recorded in the balance sheet, the transaction could not be treated as a tax avoidance arrangement. The Tribunal held that section 56(2)(viib) applies only to share issuance, not reduction, and that section 50CA requires comparison with fair market value on the actual transfer date. Since the assessee's valuation as on 20.11.2017 showed consideration not below FMV, section 50CA was inapplicable and the AO's recomputation was rejected. en-us Wed, 19 Nov 2025 00:00:00 +0530 Sat, 22 Nov 2025 07:36:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=781935 ITAT Delhi (AT) allowed the assessee's appeal, holding that the share capital reduction amounted to a transfer taxable, if at all, under capital gains provisions and not under section 56(2)(viib). As the shares were acquired in 2013 through a secondary purchase, duly recorded in the balance sheet, the transaction could not be treated as a tax avoidance arrangement. The Tribunal held that section 56(2)(viib) applies only to share issuance, not reduction, and that section 50CA requires comparison with fair market value on the actual transfer date. Since the assessee's valuation as on 20.11.2017 showed consideration not below FMV, section 50CA was inapplicable and the AO's recomputation was rejected. Case-Laws Income Tax Wed, 19 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=781935