Tuesday, January 22, 2019

CBDT takes third shot at Sec. 56(2)(viia) cherry, directs officers to ignore 'incorrect' view

CBDT clarifies that the view taken by Circular no. 10 dated Dec 31, 2018 [subsequently withdrawn by Circular no. 2 / 2019] that Sec. 56(2)(viia) would not apply to fresh issuance of shares, “would not be a correct approach, as it could be subject to abuse and would be contrary to the express provisions and the legislative intent of Sec. 56(2)(viia) or similar provisions contained in Sec. 56(2)..”; Makes it clear that “the said circular shall not be taken into account by any income-tax authority in any proceedings under the Act.”; States that any view expressed by Board vide Circular no. 10 of 2018 shall be considered to have never been expressed. 

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Delhi HC holds 10% pre-deposit requirement for penalty-only appeals inapplicable where SCN was issued before amendment

  This Tax Alert summarizes a recent ruling of the Delhi High Court (HC) [1] on whether the newly introduced pre-deposit requirement for fi...