BRIGHT LIFECARE PRIVATE LIMITED,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(2), NEW DELHI

ITA 5198/DEL/2026Status: DisposedITAT Delhi18 September 2026AY 2023-2413 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had satisfied the conditions for obtaining a valuation report from a competent person using a prescribed method (DCF). The AO cannot substitute the valuation report with another method (NAV) if the assessee's report is based on a prescribed method and obtained from a competent person.

What were the facts?

The assessee company reclassified Compulsorily Convertible Preference Shares (CCPS) from 'Borrowings' to 'Share Capital' and 'Securities Premium' after the buyback obligation was extinguished. The Assessing Officer (AO) made an addition under Section 56(2)(viib) on account of share premium received from resident investors, rejecting the assessee's valuation report.

What were the issues?

Whether the AO was justified in rejecting the assessee's valuation report for determining the fair market value of shares issued at a premium to resident investors, and consequently making an addition under Section 56(2)(viib).

Which sections of the Income-tax Act were involved?

Section 56(2)(viib),Section 270A,Section 234B,Section 234D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI M BALAGANESH & SHRI SUDHIR KUMAR

For Respondent: Shri Om Prakash, CIT(DR)

PER SHRI M BALAGANESH, ACCOUNTANT MEMBER:

The appeal in ITA No. 5198/Del/2026 for AY 2023-24, arises out of the 1. order of the ld National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 09.04.2026 against the order of assessment passed u/s 143(3) r.w.s.

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 56(2)(viib)

All 746 judgments and leading authorities on Section 56(2)(viib) →

Recent GST High Court judgments

Search GST case law →