Latest Income-Tax Details

For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

If the AO finds that the said person Smt. Vijayalakshmi is a resident in India in the present year, the effect of provisions of s. 56(2)(viib) should be decided by him afresh.

Shanti Prime Publication Pvt. Ltd.

Sec. 6(1) & 56(2)(viib) of Income-tax Act, 1961 - Income from other sources – In order to invoke the provisions of s. 56(2)(viib), it is essential that the excess amount is received by the company from a resident and therefore, this should be first examined as to whether the person from whom any money is received by the company on issue of its shares is resident in India or not in the relevant year. While allowing the appeal of the assessee against the order of CIT(A) held that AO cannot change the method of valuation of shares chosen by the assessee which is DCF method in the present case and in these three cases. If the AO finds that the said person Smt. Vijayalakshmi is a resident in India in the present year, the effect of provisions of s. 56(2)(viib) should be decided by him afresh. - ANTARIKSH SOFTTECH (P) LTD. V/s ITO - [2020] 206 TTJ 612 (ITAT-BANGALORE)