Share Premium from Listed Parent Not Taxable under Section 56(2)(viib)

ACIT Vs Ruchi Renewable Energy Pvt. Ltd (ITAT Mumbai) Relief for Subsidiaries: ITAT Mumbai says Premium from Listed Parent outside scope of 56(2)(viib) Assessee, Ruchi Renewable Energy Pvt. Ltd., issued 92,19,990 equity shares of ₹10 each at a premium of ₹17.50 per share to its parent company Ruchi Infrastructure Ltd., a listed public limited company. The premium received was ₹16.13 crore.  Valuation was carried out using the Discounted Cash Flow (DCF) method.   AO rejected the valuation, noting that the company had losses, no goodwill, or intangible assets, and no justification for c...