Answers On Topic: section 56(2)(viib)
Mr.A booked a flat in FY 2010-11 and made the payment of booking amount through banking channels. Total consideration to be paid for the flat was Rs.68Lacs. The builder issued 'Earnest Money Receipt' for the same in FY 2010-11 .Subsequently the installments were paid from time to time by Mr.A.Some of the installments were also paid by his real brother Mr.B.The installments paid by Mr.B is also mentioned in the audited accounts maintained by him. In the sales customer ledger issued by the builder for FY 2010-11 to 2019-20 the name of Mr.B has also been mentioned as co-applicant along…
► Read Answer
Assessee is a start up company and issued the shares to the investors at a premium of Rs. 200 per share. During the course of assessment proceedings for A.Y 2020-21, AO issued a show cause as to why share premium received by the assessee company should not be taxed in the hands of the company under Section 56(2)(viib) of the Act. The assessee company submitted a detailed reply,however the AO proceeded to make addition under Section 56(2)(viib) on the ground that the assessee company could not give proper justification for acceptance of the premium, without considering the fact that the…
► Read Answer
Section 56(2)(vii)(b) of Income Tax Act 1961