Share Transfer in Family Settlement Exempt from Section 56(2)(viia): ITAT Mumbai

ITO Vs S D N Company (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai heard an appeal by the Income Tax Officer (ITO) against the order of the National Faceless Appeal Centre (NFAC), Delhi, which had deleted an addition of ₹126,98,69,717 made by the Assessing Officer (AO) under Section 56(2)(viia) of the Income-tax Act, 1961, for the Assessment Year 2016-17 in the case of ITO vs S D N Company. The core issue revolved around the introduction of shares of Unitel Finance and Investments P. Ltd. (UFIPL) as capital contribution by the partners into the assessee firm. These shares wer...