2024 (11) TMI 1547

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... : Mr.Karthik Ranganathan  Senior Standing Counsel JUDGMENT (Delivered by R.SURESH KUMAR,J.) This appeal has been filed against the order of the Income Tax Appellate Tribunal in ITA No.735/Chny/2023 dated 03.06.2024. 2. The following substantial questions of law have been raised by the appellant / Revenue. 1. Whether on the facts and circumstances of the case and in law, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the CBDT Circular No.3/2019 dated 21.01.2019 clearly states that excluding fresh issuances of shares or bonus shares from the provisions of Section 56(2)(viia) would be an incorrect approach, as this could lead to potential abuse and contradict the explicit provisions and legislative intent of Section 56(2)(viia)? Was the inclusion of Clause (vii) in Section 56(2) intended as an anti-abuse measure....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onsidering that the judgment pertains to profits computed from the sale of shares, whereas in the present case, the addition was made on the entire value of the shares under Section 56(2)(viia) of the Act due to the shares being acquired without any consideration, despite their fair market value being Rs.275/- per share? 6. Whether the learned ITAT erred in allowing the assessee's app....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at issue had already been decided at least in three decisions which have been cited by the Tribunal in the order impugned itself. One is CIT Vs.Dalmia Investment Co. Ltd (52 ITR 567), the second decision is Hunsur Plywoods Limited Vs. CIT (229 ITR 112) and the third decision is PCIT Vs. Dr.Ranjan Pai (ITA No.501 of 2016 dated 15.12.2020). 5. Since this issue has been considered as stated in the....