Section 56(2)(vii)(c) not applies to New Shares of Amalgamated Company: ITAT Rajkot

DCIT Vs Rajoo Engineers Ltd. (ITAT Rajkot) ITAT Rajkot held that provision of section 56(2)(vii)(c) of the Income Tax Act doesn’t get attracted in case of share received on amalgamation as new shares allotment by amalgamated company does not give rise to a transfer of shares and hence also section 56(2)(vii) (c) has no application. Facts- The present appeal has been preferred by the revenue mainly contesting that CIT(A) has erred in deleting protective addition made on account of excess value transferred to beneficiary within the meaning of provision of section 56(2)(vii)(c) of the Income Ta...