MADHUR COAL MINING PVT. LTD.,KOLKATA vs. D.C.I.T., CIRCLE - 8(1),, KOLKATA

ITA 1784/KOL/2025Status: DisposedITAT Kolkata02 January 2026AY 2015-2016Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)9 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal agreed with the CIT(A) that Section 56(2)(viia) is applicable to direct allotment of shares and that Section 50D is applicable when the sale consideration is not ascertainable, especially in cases of transactions with related parties lacking substantiating evidence.

What were the facts?

The assessee company acquired shares at a price lower than fair market value and sold shares to group companies at prices below fair market value. The Assessing Officer made additions under Section 56(2)(viia) and Section 50D, which were upheld by the CIT(A).

What were the issues?

Whether Section 56(2)(viia) applies to direct allotment of shares and whether Section 50D is applicable when sale consideration is not ascertainable for shares sold to related parties.

Which sections of the Income-tax Act were involved?

Section 56(2)(viia),Section 50D

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2015-16 dated 27.06.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: “(1) That the Ld. Commissioner of Income-tax (Appeals), NFAC was wrong in upholding the addition of Rs.13,23,01,000 made by the Assessing Officer by applying the provisions of Section 56(2)(viia) in the matter of Shares acquired by the appellant on allotment of the Shares by subscribin

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)(viia)

All 102 judgments and leading authorities on Section 56(2)(viia) →

Recent GST High Court judgments

Search GST case law →