DEPUTY COMMISSIONER OF INCOME TAX, JAIPUR vs. HEM SECURITIES LIMITED, JAIPUR

ITA 1579/JPR/2025Status: DisposedITAT Jaipur16 September 2026AY 2018-1910 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A) was justified in deleting the addition. The assessee had substantiated the share issue price with expert valuation reports using prescribed methods, and the AO could not discard these without pointing out specific errors.

What were the facts?

The assessee company issued shares at a premium, supported by valuation reports. The AO reopened the assessment, arguing the fair market value was lower based on Rule 11UA, and added the excess premium to income. The CIT(A) deleted this addition.

What were the issues?

Whether the AO was justified in rejecting the assessee's valuation reports and making an addition under Section 56(2)(viib) based on his own calculation of fair market value.

Which sections of the Income-tax Act were involved?

Section 56(2)(viib)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, JAIPUR

Before: Shri Kuldip Singh & Shri Prakash

PER : PRAKASH, ACCOUNTANT MEMBER:-

1.

This appeal by the Revenue is directed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as “the learned CIT(A)”] dated 10.09.2025 arising out of the assessment order dated 06.03.2025 passed by the Assessing Officer (hereinafter referred to as “the AO”) under section 147 read with section 144B of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). Hem Securities Limited

2.

The grounds of appeal raised by the Revenue before us in the memorandum of appeal in Form No. 36 read as under:

“1. Whether on the facts and in the circumstances of the

The order continues below.

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