JONNALAGADDA VENKATA GIRI,VISAKHAPATNAM vs. ACIT, CENTRAL CIRCLE-1, VISAKHAPATNAM

ITA 665/VIZ/2025Status: DisposedITAT Visakhapatnam31 August 2026AY 2014-1514 pages
AI SummaryAllowed

What were the facts?

The assessee received shares from a company at a consideration less than their fair market value. The Assessing Officer made an addition under Section 56(2)(vii)(c) of the Income Tax Act, treating the difference as income. The assessee appealed this addition.

What did the Tribunal hold?

The Tribunal held that Section 56(2)(vii)(c) is not attracted to a fresh allotment of shares as it requires the 'receipt' of property, implying prior existence. A fresh allotment creates new shares, which is not a transfer of existing property.

What were the issues?

Whether the provisions of Section 56(2)(vii)(c) apply to a fresh allotment of shares where the consideration is less than the fair market value.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Pronounced: 31.08.2026

PER SHRI VIJAY PAL RAO, VICE PRESIDENT :

This appeal by the Assessee is directed against the order of Commissioner of Income Tax (Appeals) [“Ld.CITA”]-3, Visakhapatnam vide DIN: ITBA/APL/S/250/2025-26/1080138105(1) dated 29.08.2025 for the Assessment Year 2014-15. ITA Bo.665/VIZ/2025 Jonnalagadda Venkata Giri

2.

The assessee has raised the following grounds of appeal :

1.

The order of the learned Commissioner of Income Tax (Appeals) is contrary

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 56(2)(vii)(c)

All 57 judgments and leading authorities on Section 56(2)(vii)(c) →

Recent GST High Court judgments

Search GST case law →