Liability to tax premium on redemption of preference shares arose when the same was actually received

Enzen Global Solutions Pvt. Ltd Vs ITO (ITAT Bangalore) Conclusion: While holding that the premium on redemption of preference shares was exigible to tax under the head ‘Income from Capital Gains’, the ITAT held that the revenue authorities were not justified in making the additions to the assessee’s income on the ground of notional premium receivable on preference shares. Held: Assessee invested an amount in the preference shares of a Private Limited Company. In its income tax return, assessee declared an amount being the premium accrued on the redemption of preference share...