No Section 56(2)(viib) addition for allotment of equity shares by Subsidiary to holding company at premium

Rugby Regency P. Ltd Vs ACIT (ITAT Delhi) In a recent case between Rugby Regency P. Ltd and ACIT (ITAT Delhi), a crucial issue regarding the allotment of equity shares at a premium was contested under Section 56(2)(viib) of the Income Tax Act. The dispute revolved around the valuation method adopted for determining the fair market value (FMV) of shares allotted by the subsidiary to its holding company. This article delves into the legal intricacies of the case and sheds light on the precedents set by the judiciary in similar matters. Background: Rugby Regency P. Ltd issued 12,03,000 equity sha...