Any consideration received by an issuing company in excess of the FMV to the extent it exceeds shall be liable to tax, says ITAT

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Last updated: 10 July 2021
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The Income Tax Appellate Tribunal (ITAT) Bangalore ruled that any consideration received by a company issuing shares that exceeds the Fair Market Value (FMV) is taxable. This decision relates to the application of Section 56(2)(viib) of the Income Tax Act, 1961, which was introduced to address such premiums. The tribunal condoned a delay in the assessee's appeal, allowing the case to be heard on its merits.

Court :
ITAT Bangalore

Brief :
This appeal by the Assessee is against the order of the Commissioner of Income Tax (Appeals)–10, Bangalore, dated 8.3.2019 in relation to assessment year 2013-14.

Citation :
ITA No.2170/Bang/2019

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

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