Views expressed in Circular 10/2018 (subsequently withdrawn) were contrary to legislative intent: CB

The Central Board of Direct Taxes (CBDT) has issued another circular to clarified that any view expressed in the circular no. 10/2018, which was subsequently withdrawn, shall be considered to have never been expressed by the board. The CBDT has decided that the view expressed in said circular that sec. 56(2)(viia) won’t apply to fresh issuance of shares would not be a correct approach and it would be contrary to provisions and legislative intent.

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