ACIT CIRCLE-28(1), NEW DELHI vs. AJAY SINGH, NEW DELHI

ITA 912/DEL/2020Status: DisposedITAT Delhi30 May 2025AY 2015-16Bench: SHRI VIKAS AWASTHY (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found shortcomings in the orders of the lower authorities regarding the determination of the fair market value of the shares. The issue was restored to the AO for a fresh assessment, considering all relevant factors including a reconstruction scheme and convertible warrants.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition made by the AO. The assessee purchased a large number of equity shares for a nominal consideration, which the AO treated as having a significantly higher fair market value.

What were the issues?

Whether the fair market value of shares purchased for a nominal consideration, which were under lock-in, should be determined based on stock exchange prices or other valuation methods as per the Income Tax Act rules.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)(c),Section 147,Section 143(3),Section 11UA(1)(c)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A”, DELHI

Hearing: 03.03.2025

PER VIKAS AWASTHY, JM: This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-10, New Delhi (hereinafter referred to as 'the CIT(A)') dated 06.12.2019, for assessment year 2015-16. 2. The Revenue in appeal has assailed the order of CIT(A) by raising following grounds:-

2 “1. Whether on facts and in circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 7,9

The order continues below.

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