Applicability of section 56(2)(viib) of it act in case of ri

Rajeev kumar Nayak (ACS) (283 Points)

14 April 2015  

Dear Member,

I have a query with respect to applicability of Sectioin 56(2)(viib) of IT Act, 1961.

Whether Sectioin 56(2)(viib) of IT Act, 1961 is applicable in case of Right Issue of Shares by Private Limited Company.

For example- A Company wants to issue shares @ Rs 2500 (Face value- Rs. 10) per share under Right Issue. Whether Section 56(2)(viib) will be applicable in this case and Company will have to get its shares valued as per Rule 11U/11UA.

Thanks in advance.

CS Rajeev Nayak

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