Disallowance u/s. 56(2)(viib) unwarranted as creditworthiness cannot be doubted when share allotted to existing shareholder

Advertisement ITO Vs Anglian Infrastructure Development Private Ltd (ITAT Delhi) ITAT Delhi held that disallowance of share premium under section 56(2)(viib) of the Income Tax Act not sustainable since shares are allotted to an existing shareholder and hence creditworthiness cannot be doubted. Accordingly, appeal of revenue dismissed. Facts- The case of the assessee was selected for limited scrutiny. Thereafter, AO passed assessment order by making addition on account of share premium received; disallowing claim for preliminary expense and disallowing claim of expense against interest incom...