Start up addition us 56. No coercive measures to recover demand. CBDT.[F.No.173/14/2018-ITA-I]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
Dated: December 24, 2018
All Principal Chief Commissioners of Income tax
– Determination of fair market value of unquoted equity shares of ‘Start Up’ companies under section 56(2)(viib) of the Income-tax, 1961 read with Rule 11UA(2) of Income-tax Rules, 1962- reg.
Vide letter of even number dated 06.02.2018 on the above mentioned subject, it was instructed by the CBDT that no cocrcive measures to recover the outstanding demand would be taken in case of ‘Start up’ if additions have been made by the Assessing Officer under section 56(2) (viib) of the Income-tax Act, 1961 (hereafter ‘Act’) after modifying/rejecting the valuation so furnished under Rule 11UA(2) of the Income-tax Rules, 1962.
2. Representations on similar lines have again been received. The matter is under consideration of the Board. In view of the same, undersigned is directed to state that no cocreive measures to recover the outstanding demand should be taken in the matter till further instructions in this regard.
(Vinay Sheel Gautam)
Under Secretary (ITA-I), CBDT