Section 56(2)(viib) not applies to share issue at face value to Shareholders under Amalgamation Scheme

DCIT Vs Ozone India Ltd. (ITAT Ahmedabad)

In the instant case, pursuant to amalgamation, all assets, liabilities, undertaking of the amalgamating company (KEPL) are agreed to be vested in the amalgamated company( the Assessee) as a going concern. The amalgamated company has issued 300 equity shares of its company at face value for each shares of amalgamating company in consideration of such vesting of assets, liabilities etc. as per the scheme of amalgamation duly approved by the Jurisdictional High Court. As a result, share

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