Section 56(2)(viii)(c)(ii) not applies to money/ property received from close relatives

Prakash Chand Sharma HUF Vs ITO (ITAT Jaipur) Facts- The assessee is an existing shareholder of M/s Prakash Deep Finance Co. Ltd. having 99,500/- shares of Rs. 10/- each amounting to Rs. 9,95,000/- since 2007. During the year PDFCL allotted 3,00,000 shares to the assessee at face value of Rs. 10/- each for Rs. 30 lakhs on 31.03.2014. The AO however held that FMV of shares u/s 56(2)(vii)(c) read with rule 11UA as on 31.03.2014 is Rs. 11.52 per share and this shares were allotted at a value lower by Rs. 1.52 per share. Accordingly, he made addition of Rs. 4,56,000/- (3,00,000*1.52) by holding th...