Pre-1 Oct 2009 Share Gifts Not Taxable Under Section 56(2)(vii)(c): ITAT Mumbai

Smt. Prema Mukesh Jhalani Vs ITO (ITAT Mumbai) The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal and held that the reassessment proceedings initiated for Assessment Year (AY) 2011-12 were invalid. The dispute arose after the Assessing Officer (AO) reopened the assessment on the ground that the assessee had received 1,03,786 equity shares of M/s Krishnaping Alloys Pvt. Ltd. as gifts from 20 different donors and treated the value of those shares, amounting to ₹1,03,78,600, as taxable under Section 56(2)(vii)(c) of the Income Tax Act. The assessee ...