Section 56(2)(vii)(b) Not Applicable to Companies before 01.04.2017

Rhythm Polymers Pvt. Ltd. Vs PCIT (ITAT Delhi) Introduction: The case of Rhythm Polymers Pvt. Ltd. vs. PCIT revolves around the applicability of Section 56(2)(vii)(b) of the Income Tax Act to companies for the assessment year 2015-16. The Principal Commissioner of Income Tax (PCIT) issued a revisionary order under Section 263 of the Income Tax Act, which the assessee company has appealed. Detailed Analysis: Rhythm Polymers Pvt. Ltd. filed its income tax return for the assessment year 2015-16, and the case was selected for limited scrutiny under the Computer-Assisted Scrutiny Selection (CASS)...