2025 (3) TMI 31

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.... 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 year 2014-15. 2. The Revenue has raised fol....

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....g 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 tax the excess share premium charged by the assessee company. The L....

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....on 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 Solutions & Services India Pvt.Ltd. (supra) endorsed the construction of s.56(2)(viib) rendered by the Co-ordinate Bench....