TMI Blog2021 (10) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... irected to carry necessary verification as directed hereinabove. Assessee is directed to file all relevant documents as called for support the claim. Ld. AO is then to consider the claim in accordance with law. Needless to say that proper opportunity of being heard to be granted to assessee. Assessee's appeal is allowed for statistical purposes. - ITA No. 1957/Bang/2019 - - - Dated:- 21-10-2021 - Chandra Poojari , Member ( A ) And Beena Pillai , Member ( J ) For the Appellant : Navaneeth N. Kini , CA For the Respondents: K. Sankarganesh , JCIT ( DR ) ORDER Per Beena Pillai , Judicial Member Present appeal filed by assessee against order dated 26/06/2019 passed by the Ld. CIT(A)-6, Bangalore for assessment year 2016-17 on following grounds of appeal : 1. Because the learned Commissioner of Income Tax (Appeals), erred in law whilst correctly appreciating the rationale for introduction of this section to curb the practice of closely held companies bringing in undisclosed money of promoters/directors by issuing shares at a high premium and levy tax on the same and not substantiating how this order upholding the addition/dismissal achieves the object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ethod stands justified. 8. Because the learned Commissioner of Income Tax (Appeals) has relied on the decision of the jurisdictional ITAT, without quoting the citation of the decision. 9. Because the learned Commissioner of Income Tax (Appeals), denied principles of natural justice to the assessee by disposing off the appeal, while this addition came to be dubbed as Angel Tax and Government of India, as part of its startup policy/ease of doing business is devising policies to mitigate the hardship of this Angel Tax. 10. The assessee is a startup and as on the date of filing this appeal, is recognized by Department for promotion of Industry and Internal Trade (DPIIT) and the Government of India has issued notifications substantially altering the scope of interpreting the provisions of section 56(2)(viib), including provision for the assessing officer for prior approval of the special committee set up for the purpose. 11. The assessee craves leave to add/alter any of the grounds of appeal before or at the time of hearing Brief facts of the case are as under: 2. Assessee is a company and filed its return of income on 15/10/2016 declaring loss of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssential Pvt. Ltd. vs CIT(A) in ITA No. 139/B/2020 assessment year 2016-17 by order dated 30/06/2021 as under: 8. With regard to the correctness of DCF method adopted by the Assessee for valuing shares and the procedure to be followed when such method of valuation is not accepted by the AO we notice that the ITAT, Bangalore Bench in the case of VBHC Value Homes Pvt. Ltd., Vs ITO in ITA No. 2541/Bang/2019 order dated 12-06-2020, after relying on the decision of the Hon'ble Bombay High Court in the case of Vodafone M-Pesa Ltd. Vs Pr. CIT 164 DTR 257 and decision of the ITAT, Bangalore Bench in the case of Innoviti Payment Solutions Pvt. Ltd., Vs ITO (2019) 102 Taxmann.com 59 held as follows:- 9. We have considered the rival submissions. First of all, we reproduce paras 11 to 14 from the Tribunal order cited by learned AR of the assessee having been rendered in the case of Innoviti Payment Solutions Pvt. Ltd., Vs. ITO (supra). These paras are as follows: 11. As per various tribunal orders cited by the learned AR of the assessee, it was held that as per Rule 11UA (2), the assessee can opt for DCF method and if the assessee has so opted for DCF method, the AO cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer and that has not been done by him. In fact, he has completely disregarded the DCF Method for arriving at the fair market value. Therefore, the demand in the facts need to be stayed. 12. As per above Para of this judgment of Hon'ble Bombay High Court, it was held that the AO can scrutinize the valuation report and he can determine a fresh valuation either by himself or by calling a final determination from an independent valuer to confront the assessee. But the basis has to be DCF method and he cannot change the method of valuation which has been opted by the assessee. Hence, in our considered opinion, in the present case, when the guidance of Hon'ble Bombay high Court is ITA 139 Bang 2020 available, we should follow this judgment of Hon'ble Bombay High Court in preference to various tribunal orders cited by both sides and therefore, we are not required to examine and consider these tribunal orders. Respectfully following this judgment of Hon'ble Bombay High Court, we set aside the order of CIT(A) and restore the matter to AO for a fresh decision in the light of this judgment of Hon'ble Bombay High Court. The AO should scrutinize the valuation r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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