Section 56(2)(viib) not applicable for allotment of share at premium to existing shareholders

ACIT Vs Dhruv Milkose Pvt. Ltd. (ITAT Delhi) Introduction: The case of ACIT Vs Dhruv Milkose Pvt. Ltd. before the Delhi ITAT delves into the taxation of premium charged on the issue of shares to existing shareholders. The crux of the matter revolves around the interpretation of Section 56(2)(viib) of the Income Tax Act and its applicability in such scenarios. Detailed Analysis: The Revenue filed an appeal against the order of the CIT(A) concerning Assessment Year 2015-16. The dispute centered on the addition of Rs.4,09,11,014/- made by the AO on account of share premium received, invoking Sect...