KUMARI INFIN (P) LTD,NEW DELHI vs. ITO WARD - 14(4), NEW DELHI

The solitary grievance of the assessee is that the CIT(A) erred in upholding the addition of Rs.1,81,91,344/- made by the Assessing Officer in terms of section 56 (2)(viia) of the Act.

None appeared on behalf of the assessee inspite of notice we decided to proceed exparte. The DR was heard at length. Case records carefully perused.

We find that the assessee has received 90,000 shares of Bhawani Portfolio Limited @ rate of Rs.1000/- per share which was found to be less than fair market value by the AO on the basis of NAV as per Audited Financial Filed. According to the AO as per Rule 11 UA it comes to Rs.1202/- per share basis this the AO proceeded to make the addition of difference of Rs.202.13 per share and made addition of Rs.1,81,91,344/-.

Assessee strongly agitated the matter before the CIT(A). It was strongly contended that if the FMV determined by the AO is considered as income then the value of share allotted will automatically have the same effect, therefore, no addition is called for.

After considering the facts and the submissions the CIT(A) held as under :-

We have given a thoughtful consideration to the findings of the CIT(A) (supra) we do not find any error or infirmity in the above findings, therefore, no interference is called for. The appeal filed by the assessee is dismissed.

Decision announced in the open court on 01.09.2022.