Section 56(2)(viib) Not Apply to Shares Allotted at Premium to Holding Company

ITO Vs Solitaire BTN Solar Pvt Limited (ITAT Delhi) The recent decision by the Income Tax Appellate Tribunal (ITAT) Delhi in the case of ITO Vs Solitaire BTN Solar Pvt Limited has significant implications for the interpretation of Section 56(2)(viib) of the Income Tax Act, 1961. Detailed Analysis: The case revolves around Solitaire BTN Solar Pvt Limited, engaged in energy and infrastructure development, which issued 1,00,000 Optional Convertible Preference Shares (OCPS) to its 100% holding company, Hindustan Clean Energy Ltd. The Assessing Officer (AO) had disputed the premium of Rs. 9,90,00,0...