ALLIANZ INTERNATIONAL PVT LTD,NEW DELHI vs. ITO WARD - 2(2), NEW DELHI
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Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’ NEW DELHI
Before: SHRI SAKTIJIT DEY
per share, in terms of Rule 11UA.
Undisputedly, invoking the provisions of section 56(2)(viia) of
the Act, the Assessing Officer has treated the difference between the
sale price and FMV of the shares of the assessee as income of the
assessee. On careful reading of section 56(2)(viia) of the Act, it is
observed that the Assessing Officer can invoke the provision in two
contingencies. Firstly, if the shares are received by the assessee
without consideration and aggregate FMV of shares exceeds
Rs.50,000 then whole of such amount shall be treated as FMV of the
shares and added to the income of the assessee. In the second
situation, if the consideration for which shares are received is less than
the aggregate FMV by an amount exceeding Rs.50,000, such excess
amount shall be treated as consideration of the shares and added to the
income of the assessee. In the facts of the present appeal, admittedly,
4 ITA No.3828/Del./2019
the sale price of shares at Rs.100 per share is more than the FMV of
the shares determined at Rs.99.13. Therefore, in the first place, the
provisions of second 56(2)(viia) of the Act are not applicable.
Therefore, I direct the Assessing Officer to delete the addition of
Rs.2.12.161. Grounds are allowed.
In the result, the appeal is allowed. Order pronounced in the open court on 31st March, 2023.
Sd/- (SAKTIJIT DEY) JUDICIAL MEMBER Dated: 31st March, 2023. Mohan Lal