Premium on redemption of preference shares not taxable as deemed dividend

Information Technology Park Ltd. Vs ITO (ITAT Bangalore)

ITAT Bangalore held that excess premium paid by the assessee on redemption of preference shares cannot be taxed as deemed dividend under section 2(22)(d) or section 2(22)(e) and hence deleted the addition.

Facts-

During the assessment proceedings a reference was made to the Transfer Pricing Officer (TPO) for determination of the Arm’s Length Price (ALP) of this international transaction assessee entered into

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