TMI Blog2023 (11) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... that it had charged qua the shares by producing a valuation certificate of the Chartered Accountant. The valuation was made based on the Net Asset Value Method (NAVM). The valuation revealed that the shares of the respondent/assessee were worth Rs.200.52 per share. We find from the assessment order that the AO has taken note of the fact that if other methods were used, the valuation would have been much higher. There was on record a justification concerning the premium that the respondent/assessee received for its shares. AO asked himself the wrong question and proceeded thereafter on the wrong path. It is important to highlight, something which the Tribunal has noted, that in a query put by the AO to the representative of Adhyay, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. For the Respondent Through: Mr M.P. Rastogi with Mr Manu K Giri, Advs. RAJIV SHAKDHER, J.: (ORAL) 1. This appeal concerns Assessment Year (AY) 2007-08. 2. Via this appeal, the appellant/revenue seeks to assail the order dated 14.01.2019, passed by the Income Tax Appellate Tribunal [in short, Tribunal ]. 3. Mr Shailendera Singh, learned senior standing counsel, who appears on behalf of the appellant/revenue, says that there are two issues which have been raised in the instant appeal filed before this court. 4. First, the sustainability of the deletion of addition made under Section 68 of the Income Tax Act, 1961 [in short, Act ] with regard to the investment made in shares issued at premium by the respondent/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the state of affairs represented that the investment made in the shares of the respondent/assessee was, in effect, undisclosed income. 8. As regards the second issue, Mr Singh submitted that the CENVAT credit availed by the respondent/assessee could not be construed as income derived from an industrial undertaking so as to entitle the respondent/assessee to claim a deduction under Section 80IB of the Act. 8.1 The submission was that the expression derived from in the said provision includes that income which has a direct nexus with the profits and gains of an industrial entity. 8.2 In other words, according to Mr Singh, although the self-CENVAT credit availed by the respondent/assessee would otherwise be income of the respondent/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.200.52 per share. 14. We find from the assessment order that the AO has taken note of the fact that if other methods were used, the valuation would have been much higher. Therefore, there was on record a justification concerning the premium that the respondent/assessee received for its shares. 15. The issue, as noticed above, emphasised by Mr Singh was with regard to the credit balance available in the bank account qua Adhyay, before and after the investment. 16. That said, what has come through on perusal of the record is that the respondent/assessee has furnished the details of the cheque payments and therefore, there was enough and more material available with the AO to make further inquiry into the matter. 17. The AO, inst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Rs.100.00 Crores. No, there is no cash deposit in the Bank Account before making the payment for Share Application Money to M/s Montage Enterprises Pvt. Ltd. 21. Thus, according to us, no substantial question of law arises for consideration as far as the first issue is concerned. 22. As regards the second issue, in our view, the record shows that the Commissioner of Income Tax (Appeals) [in short, CIT(A) ] ruled in favour of the respondent/assessee; a finding which was affirmed by the Tribunal. 22.1 The CIT(A) went into a detailed analysis of the issue at hand and correctly drew a distinction between the CENVAT credit, which is made available to a manufacturer against the duty drawback, and the Duty Entitlement Pass Book (DE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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