Rule 11UA Allows 10% Tolerance Limit for Differences Between Issue Price and FMV, No Additions Required u/s 56(2)(viib): ITAT

Considering the difference in issue price and FMV below the tolerance limit, ITAT upheld AO’s decision
By Kavi Priya - On October 4, 2024 9:30 am - 2 mins read
ITAT - ITAT Chennai - Income tax - Income Tax Appellate Tribunal - Section 56(2)(viib) of Income Tax - Fair Market Value - taxscan

The Chennai bench of Income Tax Appellate Tribunal ( ITAT ) ruled that no addition was required under Section 56(2)(viib) of the Income Tax, 1961 if the difference between the issue price and Fair Market Value ( FMV ) was below the 10% tolerance limit under Rule 11UA of the Income Tax Rules, 1962. Go…

Your free access to Taxscan has Expired

To read the article, get a premium account.

Taxscan Premium

Why should you subscribe?
  • Enjoy our website without interruptions from advertisements
  • Receive Daily newsletters
  • Receive realtime Telegram/Whatsapp news updates
  • Download original Judgements / Order / Notifications / Circulars, etc
  • Enjoy exclusive entry fees to Simplified series. (Webinars, Seminars, masterclasses, etc.)
  ₹2299 + GST for 1 year

Subscribe Now

Already a member? Log in here

Topics

taxscan-loader