ACIT, CENTRAL CIRCLE-1, THANE, THANE vs. KANCHAN MARKHEDKAR, THANE

ITA 713/MUM/2025Status: DisposedITAT Mumbai15 May 2026AY 2015-1620 pages
AI SummaryDismissed

What were the facts?

The Assessing Officer made additions under Section 56(2)(vii)(c) by valuing shares of underlying companies at fair market value, instead of the shares of holding companies actually purchased by the assessee. The AO considered the transactions as a colourable device to acquire shares at a significantly lower value.

What did the Tribunal hold?

The Tribunal held that the AO erred in applying the amended Rule 11UA retrospectively and in valuing the underlying company shares instead of the holding company shares. The valuation should have been based on the book value of assets as per the unamended Rule 11UA.

What were the issues?

Whether the AO correctly applied Section 56(2)(vii)(c) by valuing shares of underlying companies instead of holding companies, and whether the amended Rule 11UA was applied retrospectively.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)(c),Section 153A,Section 132,Section 143(3)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE INCOME TAXAPPELLATE TRIBUNAL “D” BENCH MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER& SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER & ACIT Central Circle- Kanchan 1, Thane Markhedkar, Room No. 10, A Wing, Vs. 1905, Drewberry, 6th floor, Ashar IT Kolshet Road, Park, Road No. 16Z, Everest World, Thane West, Thane-400607. Maharashtra-400604 PAN/GIR No. AOQPM9333J (Applicant) (Respondent) Revenue by Shri Umashankar Prasad, Ld. DR Assessee by Shri Vijay Mehta, Ld. AR Date of Hearing 21.04.2026 Date of Pronouncement 15.05.2026

आदेश / ORDER PER MAKARAND VASANT MAHADEOKAR, AM: These appeals are filed by the Revenue against the separate orders passed by the Commissioner of Income Tax (Appeals), Pune-11 [hereinafter referred to as “the CIT(A)”] under section 250 of the Income-tax Act, 1961 [hereinafter referred to as “the Act”] for A.Ys. 2015–16 and 2016–17, both dated 08.11.2024, arising out of the assessment orders passed by the Assessing Officer under section 143(3) read with section 153A of the Act dated 31.03.2022.Since the issues involved in both the appeals are identical and arise out of common set of facts, these appeals were heard together and are being disposed of

The order continues below.

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