M/S. SUNGLOW SUITINGS PVT. LTD.,BHILWARA vs. ACIT, CIRCLE, BHILWARA

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ITA 104/JODH/2020Status: DisposedITAT Jodhpur21 December 2020AY 2015-164 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the valuation of shares based on the balance sheet as of 31.03.2015, or considering profit up to the date of issue, resulted in a value per share higher than the issue price. Therefore, Section 56(2)(viib) was not applicable, and the Pr. CIT's order was not prejudicial to the revenue.

What were the facts?

The assessee company issued shares at a premium. The Pr. CIT invoked revisional jurisdiction under Section 263, holding the assessment order erroneous for not adding the difference between the issue price and the fair market value (FMV) of shares under Section 56(2)(viib). The Pr. CIT used the balance sheet as of 31.03.2014 for valuation.

What were the issues?

Whether the Pr. CIT correctly exercised revisional jurisdiction under Section 263 by holding the assessment order erroneous and prejudicial to revenue regarding the valuation of shares under Section 56(2)(viib).

Which sections of the Income-tax Act were involved?

Section 263,Section 56(2)(viib)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

Before: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Shri P.C. Parwal (CA)- Ld. AR
For Respondent: Shri K.C. Bhadok - Ld. CIT DR

आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ�/ The Appellant 1. ��थ�/ The Respondent 2. आयकरआयु�(अपील) / The CIT(A) 3. आयकरआयु�/ CIT– concerned 4. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण, जोधपुर / DR, ITAT, Jodhpur 5. गाड�फाईल / Guard File 6.

आदेशानुसार/ BY ORDER,

उप/सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, जोधपुर / ITAT, Jodhpur.

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