Share Premium Not Taxable: ITAT Rules Section 56(2)(viib) Not Applicable to Holding-Subsidiary Transactions

A B Propmart Pvt. Ltd. Vs ITO (ITAT Delhi) No Tax on Share Premium Within Group: ITAT Delhi Deletes ₹8.19 Cr Addition, Says 56(2)(viib) Not for Holding–Subsidiary Deals Assessee-company issued shares at a premium of ₹5,056 per share, receiving ₹8.64 crores from its 100% holding company. Assessee justified the premium using the Net Asset Value method under Rule 11UA, supported by a valuer’s report valuing its main land asset at ₹13 crores. AO ignored this valuation and relied on an earlier erroneous report showing a value of only ₹274 per share, and made an addition of ₹8.19 cro...