Treatment of share application money/share capital and share premium under the Income Tax Act

Last updated: 17 September 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) Mumbai has ruled that the provisions of Section 56(2)(viib) of the Income Tax Act, concerning the treatment of share application money and share premium, were not applicable to the assessment year 2012-13. The tribunal found that the Assessing Officer (AO) had no power to question the premium charged by the assessee on share issuance, as the relevant section only came into effect from Assessment Year 2013-14 onwards. Consequently, the appeal by the revenue was dismissed.

Court :
ITAT Mumbai

Brief :
Aforesaid appeal by revenue for Assessment Year (AY) 2012-13 arises out of the order of learned Commissioner of Income-Tax (Appeals)-12, Mumbai [CIT(A)], dated 02/09/2019 in the matter of assessment framed by Ld. Assessing Officer u/s 143(3) on 28/03/2015.

Citation :
I.T.A. No. 103/Mum/2020

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1 Year PLAN
1999
(Excl. of GST ₹359)

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

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Poojitha Raam Vinay
Published in Income Tax
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