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2024 (1) TMI 1183 - ITAT DELHIRevision u/s 263 - large share premium received during the year under consideration - valuation of shares and the applicability of Section 56(2)(viib) - PCIT held that the assessment records reflect complete lack of enquiry on the issue of ‘fair market value of the shares issued during the year’, as the order revolves only around the transaction of EPF/ESI Contribution and the assessment order is cryptic and non-speaking - HELD THAT:- For the purpose of determination of fair value, the Assessee produced Valuation Report prepared under Rule 11UA of Income Tax Rule 1962. The said valuation has been prepared by the Chartered Accountant based on the books of account, financial statements and other records of the Company drawn up to 26/02/2015. Assessee produced audited balance sheet before the A.O. as on 31/03/2015 and furnished balance sheet as on 02/03/2015, but the audited balance sheet has been disbelieved by the PCIT on the ground that the balance sheet as on 02/03/2015 has not been approved by the Annual General Meeting the same cannot be considered for the purpose of Rule 11UA of the Rules. The said observation of the Ld. PCIT is not supported by any of the provisions of law. On the contrary, the Rule 11UA of the Rules does not mentions the pre-condition of approval of the balance sheet by the Annual General Meeting. Therefore, the above finding of the Ld. PCIT is found to be perverse. As assessee has already produced all the details in respect of the issue of ‘large share premium received during the year under consideration’ at the time of original assessment proceedings itself which has been already dealt by the A.O. and decided in favour of the Assessee CIT(A) has committed error in exercising the power conferred u/s 263 - Decided in favour of assessee.
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