Assessee-company was formed with two shareholders. One of shareholders introduced a sum of Rs. 23.32 crores in company through banking channels and from said money, she was allotted 10100 shares at a premium of Rs. 23,086 per share. AO held that since shares in question were issued at a premium far in excess of Fair Market Value of shares in favour of shareholder, same was clearly ‘Income from other sources’ in hands of closely held company which was covered by clause (viib) of section 56(ii) of the Act. Tribunal held that the benefit had only passed on her daughter shareholder, other 50 percent shareholder any there is no scope in the Act to tax cash or asset transferred by a mother to her daughter. On appeal by the revenue Court held that AO has to undertake exercise of determining fair market value of shares. Matter remanded. Court also observed that the assessee may also seek necessary clarification from the Central Board of Direct Taxes on administrative side. (AY. 2014-15)