17 Vaani Estates Pvt. Ltd. vs. Addl./Jt./Deputy/Asst. CIT
[2024] 462 ITR 232 (Mad.)
A.Ys.: 2014-15
Date of order: 19th January, 2024
Articles 215, 226 and 227 of the Constitution of India
Decision of High Court binding on Income-tax Authorities — Order of assessment ignoring direction of High Court — Not valid
The assessee company was initially formed by one BGR and his wife SR each holding 5,000 shares. Upon death of BGR, his shares devolved upon his daughter VR. In order to purchase property, SR introduced ₹23.32 crores through banking channels against which she was allotted 10,100 shares at a premium of ₹23,086 per share. The AO treated the share premium as income from other sources u/s. 56(2)(viib) of the Act. When the matter reached in appeal before the Tribunal, the Tribunal decided the issue in favour of the assessee. However, on department’s appeal before the High Court, the High