Is the difference between the fair market value and the issue price of shares at a premium considered as income of the assessee?

Last updated: 10 July 2021
Quick Summary
This case examines whether the difference between the fair market value (FMV) and the issue price of shares, when shares are issued at a premium, is considered taxable income for a company. The Income Tax Appellate Tribunal reviewed the applicability of Section 56(2)(viib) of the Income Tax Act, 1961, which addresses such premiums received by closely held companies.

Court :
ITAT Bangalore

Brief :
This appeal by the Assessee is against the order of the Commissioner of Income Tax (Appeals)–7, Bangalore, dated 29.11.2019 in relation to assessment year 2016-17.

Citation :
ITA No.139/Bang/2020

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

3 Months PLAN
999
(Excl. of GST ₹179)

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