ACIT CIRCLE 16(1), DELHI vs. KUL PRAKASH CHANDOK , DELHI

ITA 1921/DEL/2021Status: DisposedITAT Delhi08 January 2024AY 2015-169 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that bonus shares are issued out of capitalization of existing reserves and do not result in any inflow of fresh funds or increase in capital employed. Therefore, the provisions of Section 56(2)(vii)(c) are not attracted.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 36,10,63,656/- under Section 56(2)(vii)(c) of the Income Tax Act on account of bonus shares received by the assessee. The CIT(A) deleted this addition, holding that Section 56(2)(vii)(c) is not applicable to bonus shares.

What were the issues?

Whether the provisions of Section 56(2)(vii)(c) of the Income Tax Act are applicable to bonus shares received by an assessee.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)(c),Section 55(2)(aa)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘C’: NEW DELHI

Before: SHRI N.K. BILLAIYA & SHRI YOGESH KUMAR US

PER N.K. BILLAIYA, AM This appeal by the Revenue is preferred against the order of the CIT(A)-37, New Delhi, dated 22.09.2020 pertaining to A.Y. 2015-16. 2. The short grievance of the Revenue is that the CIT(A) erred in deleting the addition of Rs. 36,10,63,656/- made u/s 56(2)(vii)(c) of the Act for bonus shares received.

3.

Briefly stated the facts of the case are that the assessee filed his return of income electronically on 30.09.2015 declaring total income of Rs. 8,83,90,720/-. The return was selected for scrutiny assessment and accordingly statutory notices were issued and served upon the assessee. The gross total income of the assessee comprised of following income: "T

The order continues below.

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