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2024 (1) TMI 313 - RAJASTHAN HIGH COURTValidity of the order passed u/s 148A (d) - information gathered during a survey conducted u/s 133A relied upon initiating proceedings against an assessee u/s 148 - petitioner-company issued shares on the basis of valuation made by the accountant and not by the merchant banker - HELD THAT:- We found that the AO has not initiated the proceedings u/s 148 of the Act against the petitioner on the basis of information collected during survey u/s 133A conducted on 04.03.2020 but for the reason that the case of the petitioner is selected under the risk management strategy. Issue of shares on the basis of valuation made by the accountant and not by the merchant banker - We found that though in the Shares Subscription Agreement and the Share Holders Agreement executed on 22.02.2018, the valuation report of the CA valuing the shares as on 15.02.2018 had already been given but admittedly the shares had been issued by the petitioner prior and after 24.05.2018, whereas as per Section 56(2)(viib) of the Act and Rule 11UA of the IT Rules, after 24.05.2018, valuation of the shares is required to be determined by the merchant banker. We are of the opinion that with regard to the question of issuance of shares without valuation by the merchant banker is concerned, the question would be matter of enquiry by the assessing officer that whether the valuation made by the accountant before 24.05.2018 is sufficient as per the requirement of law or not. In exercise of jurisdiction under Article 226 of the Constitution of India, once this Court finds that the impugned order does not suffer from any procedural error and the same has been passed after giving an opportunity of hearing, it is advisable to restrain from interfering in the matter and left it open for the petitioner to raise all the grounds as raised in this petition to explain the transaction regarding issuance of shares in the assessment proceedings. Thus we are satisfied that prima facie material was available with the department to proceed against the petitioner.
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