Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 291 - AT - Income TaxAddition u/s 56(2)(viib) r.w. Rule 11UA - assessee had issued 6% non-cumulative preference shares at issue price of ₹.1000/- per share which includes premium of ₹.900/- per share - assessee has converted the OFCDs into non-cumulative preference share - HELD THAT:- CIT(A) has addressed this issue in detail and held, the section 56(2)(viib)of the Act is clear that the words used in the section are “where a company, not being a company in which the public are substantially interested, receives in any previous year”. Therefore, the words used are receives. He decided the issue in favour of the assessee. In our view, the “receives” means not only issue of shares but also receipts of share consideration during the same assessment year. One cannot interpret the law merely on the basis of issue of shares or from receipt of consideration, it has to be issue of shares and receipt of consideration during the same assessment year. It is needless to say that issue of shares includes allotment of shares. In our considered view, Ld.CIT(A) has discussed this issue elaborately in his order and we do not find any reason to interfere with the findings of the Ld.CIT(A). Accordingly, ground raised by the revenue is dismissed. Admissibility of additional evidences and valuation of shares at market value - We observe that revenue has filed the ground that it does not fall under exemption clause mentioned in Rule 46A of I.T. Rules. In this regard, we observe that the Ld.CIT(A) has dealt with the issue in detail before admitting the additional evidences by relying on various decisions. In our view, the issue raised by the revenue in grounds of appeal and the same issue was also raised by the Assessing Officer in his remand report and Ld.CIT(A) has addressed the issue in detail before admitting the additional evidences. We observe from the above findings of the Ld.CIT(A) that he has clearly explained the provisions of section 250 of the Act and he accepted the valuation report considering the fact that the report constitute the very root cause of the additions made by the Assessing Officer and also he has applied his power conferred on him u/s. 250(4) of the Act. Therefore, we are inclined to accept the finding of the Ld.CIT(A) on admitting the additional evidences for the purpose of taking the issue in hand. It is needless to say that Ld CIT(A) has coterminous power to accept or reject the additional evidence filed before him. In the result, Ground No. 2 and 3 raised by the revenue are dismissed.
|