2025 (3) TMI 31

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.... ORDER PER PRADIP KUMAR KEDIA, AM : The instant appeal has been filed at the instance of the Revenue seeking to assail the First Appellate order dated 28.01.2019 passed by Commissioner of Income Tax (A)-5, New Delhi ["CIT(A)"] under s. 250 of the Income Tax Act, 1961 ["the Act"] arising from the assessment order dated 29.12.2016 passed under s. 143(3) of the Act pertaining to assessment y....

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.... 2014-15, the assessee company allotted 1,02,900 equity shares having face value of INR 100/- each to the holding company M/s. Puran Associates Pvt. Ltd. for a premium of INR 1,799/- based on value of shares as determined by independent valuer. The AO however, observed that the market value of shares stand at INR 299/- per share and consequently invoked the provision of s.56(2)(viib) of the Act to....

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....24] 164 taxmann.com 170 (ITAT, Delhi). 4. With reference to such judgements, it was submitted that the deeming fiction of provision of s.56(2)(viib) of the Act would not apply where the shares have been issued at premium by the subsidiary company to its 100% holding company. 5. We have heard rival submissions and perused the material available on record. The Hon'ble High Court in FIS Payment....