The assessee was holding 76 percent of total shareholder in\u00a0 Jai Maakali Poultry Products Pvt Ltd . There were total seven share holders in the company and all of them were close relatives either legal ascendants or descendants. Company issued shares at rate of Rs. 100 per share under rights issue. Assessee alone had applied for rights issue and company had allotted shares to assessee. Fair market value of shares was Rs. 416.38 per share.\u00a0 PCIT passed the revisional order on the ground that the assessee had received shares for value lesser than book value, therefore, provisions of section 56(2)(vii)(c) would be attracted and differential amount between book value and price paid by assessee for shares required to be brought to tax under head income from other sources. On appeal the Tribunal held that the in instant case, transaction of transfer of shares was within family and close relatives, proviso to section 56(2)(vii)(c) could not be applied. Tribunal also held that revision on the basis of audit objection is\u00a0 held to be not valid. \u00a0( AY.2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56 : Income from other sources -Share holder -Close relatives -Transactions between close relatives provisions of S 56(2) (vii)(c) is not applicable-Revision on the basis of audit objection is held to be not valid [S. 56 (2) (vii)(c), 263]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4000","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-12w","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=4000"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4000\/revisions"}],"predecessor-version":[{"id":4623,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4000\/revisions\/4623"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=4000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=4000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=4000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}