Section 56(2)(vii)(b) does not apply to shares applied for in FY 2012-13 despite allotment in FY 2013-14.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Addition u/s 56(2)(vii)(b) - issues of shares at a price more than the FMV - from the year of application or allotment - Section was inserted vide Finance Act, 2013 w.e.f 01.04.2013 - since shares were applied in FY 2012-13 as per the terms and conditions settled, the provision u/s 56(2)(viib) cannot be applied merely on the basis that shares were allotted in FY 2013-14....