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2024 (2) TMI 1229 - AT - Income TaxRevision u/s 263 - 56(2)(x)(c)(B) - FMV purchases exceeds the price of shares - Possibility of two views - PCIT observed that as per the provision of Section 56(2) (x)(c)(B) where a person received any previous year, any property other than immovable property the aggregate fair market value of such property has exceed the purchase consideration is liable to be included in the income of the assessee as income from other source HELD THAT:- The option to adopt either NAV or DCF Method for valuing the shares has been given to an Assessee in the statute itself. When the A.O. has appreciated this option availed by the Assessee, his order cannot be construed as erroneous. From the above, it is observed that it is not a case wherein the Assessing Officer failed to conduct enquiry rather it is the case wherein the AO has conducted an elaborate enquiry and adopted one of the two views which was plausible view. The question would be as to whether in such circumstances the power u/s 263 of the Act would be invoked or not. The above said question is no longer res-integra and the said issue is well settled in several decisions. Further, the Hon’ble Supreme Court in the case of Pr. CIT vs. Canara Bank Securities Ltd [2019 (10) TMI 1512 - SC ORDER] dismissed the Department’s appeal affirming the view taken by the Bombay High Court [2019 (2) TMI 2020 - BOMBAY HIGH COURT] wherein the High Court held that the question whether the income should be taxed as business income or has arisen from other source was a debatable issue and the Assessing Officer had taken the plausible view that it was a business income after due enquiries and therefore not open for the Commissioner to take such an order in revision. . Therefore, following the ratio laid down in Malabar Industrial Co. Ltd. [2000 (2) TMI 10 - SUPREME COURT] we are of the considered opinion that the impugned order of the Ld. PCIT is found to be erroneous, accordingly, order impugned of the Ld. PCIT is hereby quashed.Appeal filed by the Assessee is allowed.
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