Section 56(2)(viia) Addition Upheld – Shares Allotted Below FMV Taxable: ITAT Kolkata

Gaurav Vinimay Pvt. Ltd. Vs DCIT (ITAT Kolkata) Addition u/s 56(2)(viia) upheld – Fresh allotment of shares at below FMV taxable; appeal dismissed – ITAT Kolkata In Gaurav Vinimay Pvt. Ltd. vs DCIT (A.Y. 2015-16), the assessee challenged addition of ₹13.53 crore made u/s 56(2)(viia) on allotment of unlisted shares of group companies at a value lower than fair market value (FMV). The AO held that receipt of shares below FMV attracted anti-abuse provisions, and the CIT(A) confirmed the addition after analysing financials of investee companies and concluding that the structure indicated rot...