Assessee-company bought back its own 28 lacs shares from its holding company at face value, Rs. 100 per share, whereas book value of such shares was Rs. 146.817 per share.  It also created capital redemption reserve amounting to Rs. 28 crores being sum equal to nominal value of shares that were bought back by transferring amount from surplus available in profit and loss account. Assessing Officer applied provisions under section 56(2)(viia) and  taxed the  difference between fair market value of shares and consideration paid when they were bought back and made addition. Held that  the  shares should become property of recipient company in order to apply provisions under section 56(2)(viia) and in that case such shares should be shares of other company and could not be its own shares. Accordingly provision under section 56(2)(viia) would be inapplicable to cases of buy back of own shares and thus, addition made by invoking provisions under section 56(2)(viia)  is deleted (AY. 2013-14, 2014-15)