Fresh issuance of shares of a private company & Sec 56(2) (viia)

1. Vide cir no. 10/2018, dt 31.12.2018, CBDT notified that, sec 56(2(viia) is not applicable in respect of fresh issuance  of shares.

2. Later vide cir 2/2019, dt. 04.01.2019, it withdrew the earlier circular, making it applicable.

3. Now, again by Cir 3/2019, dt. 21.01.2019, it  clarifies about the withdrawal of the first one and further clarifies that, sec 56(2) (viia) and similar provisions of 56(2)  is applicable to fresh issuance of shares by private companies.

Utilmately: As on date Sec 56(2) (viia) is applicable to Fresh issuance of shares of a private company