Section 56(2)(viib) Addition Deleted as Shares Were Allotted to Existing Shareholders

Aadinath India Pvt. Ltd. Vs DCIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi, allowed the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, relating to Assessment Year 2014-15. The dispute concerned an addition of ₹55,55,056 made under Section 56(2)(viib) of the Income Tax Act on account of the issue of shares at a premium. The assessee, engaged in the business of trading welding rods, air compressors, lubricating oils, bearings, and machinery parts, had issued 100,001 equity shares of face value ₹10 eac...