ITAT Deletes ₹3,885 Cr Share Premium Addition as Section 56(2)(viib) Not Applies to Holding-Subsidiary Funding

OYO Hotels and Homes Private Limited Vs DCIT (ITAT Delhi) The Delhi ITAT dealt with a major addition of ₹3,885.52 crore made under Section 56(2)(viib) on account of share premium received by OYO Hotels and Homes Private Limited from its holding company, Oravel Stays Limited, through issuance of Compulsorily Convertible Preference Shares (CCPS). The Assessing Officer rejected the DCF-based valuation adopted by the assessee, alleging unrealistic projections, COVID-related omissions, and inflated valuation, and treated the entire share premium as taxable income. The assessee contended that Sect...