The assessee’s purchase of shares of NDTV Ltd. at Rs 4 per share from RRPR Holdings Pvt Ltd when the market price of the share was Rs. 140 is a benefit taxable u/s 56 (2)( vii). The argument that as it is a transaction between closely related parties, there is no motive of tax evasion & s. 56 (2) does not apply is not acceptable. The assessee has failed to explain by credible evidence any reason of buying shares of the company at Rs. 4 per share when the quoted price was Rs. 140 & so the assessee cannot say that there was no motive of tax evasion. Even otherwise, s. 56 (2) deems such differences/receipts as income. .( ITA No. 2020/del/2017, dt. 14.06.2019)(AY. 2009-10, 2010-11)
Radhika Roy v. DCIT ( 2019) 200 TTJ 665/ 73 ITR 239 / 180 DTR 329(Delhi)(Trib.), www.itatonline.org Dr. Prannoy Roy v. DCIT( 2019) 200 TTJ 665/ 73 ITR 239 (Delhi)(Trib.), www.itatonline.org
S. 56 : Income from other Sources-Purchase of shares at Rs. 4 per shares when the market price was Rs. 140 per share-Failure to explain by credible evidence or any reason or no motive for tax evasion- Difference is held to be taxable as income. [S.56(2)(vii) (c)]