In the course of assessment proceedings the AO  observed that one M/s. Kalavir Estate Pvt. Ltd. (KEPL) amalgamated with the assessee company under the scheme of amalgamation.The AO held that assessee has received excess net asset worth Rs. 39,21,16,156/- on account of amalgamation which was credited by it as capital reserve of the amalgamated company. In the opinion of the AO, the excess value of assets so received by assessee company was liable for taxation in the hands of the assessee being excess consideration for issue of its share.  CIT (A) affirmed the order of the AO .On appeal the Tribunal held  that  the issue of shares at ‘face value’ by the amalgamated company (assessee) to the shareholders of amalgamating company in pursuance of scheme of amalgamation legally recognized in the Court of Law neither falls with scope & ambit of clause (viib) to section 56(2) of the Act, when tested on the touchstone of objects and purpose of such insertion (Memorandum Explaining Finance Bill, 2012 and CBDT Circular No. 3 of 2012 dated June 12, 2012) i.e. to deem unjustified premiums charged on issue of shares as taxable income; nor does it fall in its sweep when such deeming clause is subjected to interpretative process having regard to the scheme of the Act. ( ITA. Nos. 2081/Ahd/2018 dt 13 -4 -2021 )(AY. 2013 -14)