ASIRVAD MICRO FINANCE LIMITED,ANNA SALAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE -1(1), CHENNAI

ITA 1140/CHNY/2025Status: DisposedITAT Chennai05 December 2025AY 2016-1716 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee company became a subsidiary of a public limited company, making it a deemed public company under Section 2(18) of the Act. Consequently, Section 56(2)(viib) was not applicable.

What were the facts?

The assessee, a private limited company, received share premium. The Assessing Officer (AO) made an addition under Section 56(2)(viib) of the Income Tax Act, 1961, disallowing the share premium. The assessee contended that it was a deemed public company and thus excluded from this section.

What were the issues?

Whether the provisions of Section 56(2)(viib) are applicable to a private company that has become a subsidiary of a public company, thereby being a deemed public company.

Which sections of the Income-tax Act were involved?

Section 56(2)(viib),Section 2(18)

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Cases cited in this judgment(1)Show list

Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.

  • 197 CTR 73
    197 CTR 73 · 2005 · HC
    7 citing

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI ABY T VARKEY & SHRI AMITABH SHUKLA

Hearing: 25.09.2025Pronounced: 05.12.2025

PER AMITABH SHUKLA, A.M :

This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1072914131(1) dated 04.02.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center [NFAC], Delhi, for the assessment year 2017-18. The reference to the word “Act” in this order hereinafter shall mean the Incom

The order continues below.

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