Excess share premium received BY A CLOSELY HELD COMPANY

Kerala H C has held that, the excess of Share premium received by the assessee , A CLOSELY HELD company over the FMV is taxable in the hands of the company, despite the fact that, the source has been satisfactorily explained as provided in sec 68. Rejecting the company- assessee’s claim that, Sec 56(2) can be invoked only if sec 68 is applicable, it is  clarified that, if the source is satisfactorily explained, the amount taxable would be the excess amount received as share premium , above the FMV . TS -434 -HC (KERALA) 2018.