No Penalty When Section 56(2)(viib) Itself Not Applicable to Holding–Subsidiary Share Issue

Proton Positive Health Care India Private Limited Vs ACIT (ITAT Hyderabad) Mere Failure to Substantiate Is Not “Inaccurate Particulars” – 56(2)(viib) Not Applicable to Holding–Subsidiary Share Issue Hyderabad Tribunal dealt with penalty u/s 271(1)(c) imposed on two issues—unproved sundry creditors of Rs.6,53,613 & share premium addition of Rs.77,46,883 u/s 56(2)(viib). In assessment, AO added creditors due to lack of PAN/address details & taxed share premium due to absence of valuation certificate. Assessee did not appeal quantum. AO levied penalty treating both issues as...