Case Law Analysis
|Income Tax Appellate Tribunal
Section 56(2)(viib) IT Act | CCD Conversion Prior to Share Allotment Exempt from Share Premium Taxation : ITAT Delhi
ITAT Delhi rules that Section 56(2)(viib) of the Income Tax Act applies only when consideration is received in the assessment year of share allotment. Funds received earlier via Compulsorily Convertible Debentures (CCD) conversion do not attract tax on share premium, even if valuation is based on prior balance sheets. The ruling clarifies the timing of receipt for tax applicability under this provision.