Section 56(2)(viia) not applies on acquisition of shares of a foreign company as per rule 11U(b)(ii) prior to 01.04.2019

M/s. Keva Industries Pvt. Ltd Vs Income Tax Officer (ITAT Mumbai) Conclusion: Provisions of section 56(2)(viia) was not applicable on acquisition of shares of a foreign company from its directors  because as per rule 11U(b)(ii) (prior to 01.04.2019) which defines “balance sheet‟ was not applicable to a foreign company and the amendment to Rule 11U with effect from 1.4.19 was prospective in nature. If the computation provisions could not apply, the charging section also could not apply as both sections should be read together in order to make the said provisions workable in accordance ...