9911796707
TMI Blog2024 (1) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned herein below are without prejudice to each other. 1. That the order passed by the Principal Commissioner of Income-Tax, Delhi-7 (hereinafter referred to as Hon'ble PCIT") under section 263 of the Income tax Act, 1961 ('the Act') to the extent prejudicial to the Appellant, is perverse, erroneous on facts and bad in law. 2. That the direction to AO for proposed addition of Rs. 1,52,91,038/- towards valuation of shares made by the Hon'ble PCIT is incorrect, without proper evaluation of all documentary evidences available on record, arbitrary, illegal, against the principles of natural justice and is liable to be deleted. 3. That no proper opportunity of being heard given to the Appellant by Hon'ble PCIT, Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sheet of the Ld. AO. Reliance made on CIT vs. International Travel House (2010) 194 Taxmann 324 (Delhi) 5. The pre-requisite of Section 56(2)(viib) of the Act not fulfilled 5.1 On the facts and circumstances of the case & in law, the HON'BLE PCIT erred in applying the provisions of section 56(2)(viib) of the Act without providing an opportunity to the Appellant to substantiate its claim regarding the Fair Market Value (FMV) of the share as per Explanation to Section 56(25)(viib) of the Act. 5.2 On the facts and circumstances of the case & in law, the Hon'ble PCIT grossly erred in applying the provisions of section 56(2)(vib) of the Act without appreciating the basic intention of the legislature while introducing Section 56(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpleted u/s 143(3) of the Income Tax Act, 1961, ('Act' for short) on 18/12/2017 at an assessed income of Rs. 1,93,58,260/- by making disallowance u/s 36(1)(va) of the Act on account of late payment of ESI/PF. The assessment records for the Assessment Year 2015-16 were called for examination by Ld. PCIT wherein following facts are taken note of :- * The case was selected under scrutiny. One of the reasons for section of scrutiny in "Large share premium received during the year (Verify the applicability of Sec. 56(2)(viib)". * During the year, the assessee company has issued 1,91,665/- shares at Rs. 120/- (including premium of Rs. 110/-). On perusal of the records maintained, in the case mentioned above, it is seen that the assessee compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, the Ld. Departmental Representative vehemently submitted that though the case of the assessee was initially selected for limited scrutiny to verify the 'large share premium received during the year', the A.O. has not examined the said issue, the A.O. has only concentrated on the issue of late payment of ESI/EPF. Thus submitted that, the assessment order was without making enquiries and the same is erroneous, therefore, the Ld. PCIT has rightly exercised the jurisdiction u/s 263 of the Act which requires no interference at the hands of the Tribunal and sought for dismissal of the appeal. 7. We have heard both the parties and perused the material available on record. The case of the assessee was originally selected for scrutiny for the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are allottee, who is an existing shareholder and director of the company, may be noted as under Name and address of Share Applicant No of Equity Shares Isused Fv of Equity Shares (Rs. 10/each) Share Premium (Rs. 110/-) Total Amount Receivable(Rs.) Aman Kishore Add: Villa 7, Block II, Charmwood Vilalge, Suraj Kund Road, Faridabad- 121009 PAN AOQPK6153E 1,91,665 19,16,650 2,10,83,150 2,29,99,800 1,91,665 19,16,650 2,10,83,150 2,29,99,800 Copies of share allotment related paeprs as filed with the Registrar of Companies, along with relevant challans already submitted in earlier hearing). Further documents as relating to raising of share capital money and in support of creditworthiness of the share applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eting which cannot be considered for the purpose of valuation made under Rule 11UA of the Rules, accordingly cancelled the Assessment Order. 9. 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. The 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 Ld. PCIT on the ground that the balance sheet as on 02/03/2015 has not been approved by the Annual General Meetin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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