14 August 2013
Section 56(2)(viia) applies when shares of a PRIVATE COMPANY are acquired by another PRIVATE COMPANY without consideration or for a consideration which is LESS than the FMV by an amount exceeding Rs. 50,000
Accordingly, if the difference between the FMV and the consideration exceeds Rs. 50,000 then Section 56(2)(viia) will be applicable and the whole FMV shall be the income of the purchaser company.