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2023 (6) TMI 209 - AT - Income TaxRevision u/s 263 - as per CIT large share premium received against allotment of shares have not been enquired into on the touchstone of Section 56(2)(viib) by AO - HELD THAT:- The chargeability of deemed income arising from transactions between holding and subsidiary or vice versa militates against the solemn object of Section 56(2)(viib) - the extent of inquiry on the purported credibility of premium charged does not really matter as no prejudice can possibly result from the outcome of such inquiry. Thus, the condition for applicability of Section 263 for inquiry into the transactions between to interwoven holding and subsidiary company is of no consequence. We also affirmatively note the decision of SMC Bench in the case of KBC India Pvt. Ltd. ..[2022 (11) TMI 1362 - ITAT DELHI] where it was observed that Section 56(2)(viib) could not be applied in the case of transaction between holding company and wholly owned subsidiary in the absence of any benefit occurring to any outsider. Preliminary enquiry, if undertaken, by Pr.CIT would have thus possibly changed the discourse in the present case. Inquiry on the parameters of Section 68 - On an enquiry from the Bench,counsel placed the assessment order passed by the AO in pursuance of the impugned revisional order and submitted that the additions has been carried out u/s 56(2)(viib) by re-determining the Fair Market Value. Assessee thus contends that the Assessing Officer was thus also satisfied with the parameters of Section 68 towards such nature and source of such credits in the post revisional proceedings. A revisional action of the Pr.CIT in the context of the facts of the case thus appears to be wholly unjustified and without meeting the jurisdictional requirement of Section 263 - We find wholesome merit in the plea of the assessee for cancellation of the revisional order and restoration of the order of the Assessing Officer. Decided in favour of assessee.
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