Income from other sources—Applicability of section - TopicsExpress

Income from other sources—Applicability of section 56(2)(vii)(c)—Allotment of additional shares pro rata Where additional shares were allotted pro rata by the company to its shareholders (assessee also) based on their existing shareholding, provisions of section 56(2)(vii)(c) could not be applied to tax difference between book value and issue price of additional shares treating it as a gift. Sudhir Menon HUF v. Asstt. CIT(A) (2015) 61 (II) ITCL 146 (Mum A-Trib)

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