Assessee M/s. Saahas Waste Management Private Limited, Bangalore The Deputy Commissioner Of Income Tax, Circle- 6(1)(1), Bangalore

Last updated: 04 December 2020

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The Income Tax Appellate Tribunal heard an appeal from Saahas Waste Management Private Limited regarding an addition of Rs. 85,20,036 made by the Assessing Officer under Section 56(2)(viib) of the Income-tax Act. The company had issued preference shares at a premium, valuing them using the Discounted Cash Flow method. However, the Assessing Officer rejected this valuation and used the net asset value method, which resulted in a negative value. Consequently, the entire share premium collected from resident shareholders was treated as taxable income.

Court :
ITAT Bangalore

Brief :
The assessee has filed this appeal challenging the order passed by the Ld. CIT(A) confirming the addition made by the A.O. u/s 56(2)(viib) of the Income-tax Act,1961 ['the Act' for short] amounting to Rs.85,20,036/- for assessment year 2016-17.

Citation :
ITA No.1881/Bang/2019

Daily Limit Reached