Ms. Sasikala Krishnasamy Vs. The Income Tax Officer, Corporate Ward 5(2), Chennai

Parties Involved

Facts Summary

The assessee, Ms. Sasikala Krishnasamy, is a shareholder and director in Powertech Construction Private Limited. The company proposed to allot 3,930 shares on a rights basis with a face value of Rs.1,000 per share and a premium of Rs.4,004 per share, based on a valuation report dated 31.03.2013. The assessee was allotted 813 shares. The Assessing Officer (AO) issued a notice under section 148 of the Income Tax Act and subsequently proposed an addition of Rs.10,19,908 under section 56(2)(vii)(c) of the Act, claiming that the shares were allotted at a price less than the fair market value. The assessee filed an appeal against this order, which was dismissed by the First Appellate Authority (FAA). The assessee then filed the present appeal before the Tribunal, submitting additional evidence to support her case.…

Legal Issues

• 1. Whether the First Appellate Authority (FAA) is justified in confirming the addition made by the AO of Rs.10,19,908 under section 56(2)(vii)(c) of the Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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