K. G. FINVEST PRIVATE LIMITED,EAST DELHI vs. CENTRAL CIRCLE 29, DELHI, NEW DELHI

ITA 4330/DEL/2025Status: DisposedITAT Delhi29 January 2026AY 2015-16Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)8 pages
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What did the Tribunal hold?

The Tribunal held that the assessee was entitled to choose the valuation method as per Rule 11UA, and the AO could not substitute it with another method. The addition made by the AO was deleted.

What were the facts?

The assessee company issued equity shares at a premium, valuing them using the Discounted Cash Flow (DCF) method. The Assessing Officer (AO) rejected this valuation, opting for the Net Asset Value (NAV) method, and made an addition under Section 56(2)(viib) for the differential amount. The CIT(A) upheld the AO's decision.

What were the issues?

Whether the AO can reject the valuation method chosen by the assessee under Rule 11UA for shares issued at a premium, and whether assessment proceedings under Section 143(3) abate if Section 153C proceedings are initiated.

Which sections of the Income-tax Act were involved?

Section 56(2)(viib),Section 143(3),Section 153C

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

Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL

For Appellant: Shri Sudesh Garg, Adv. &, Shri Prince Bansal, CA
For Respondent: Shri Jitender Singh, CIT DR
Hearing: 26.11.2025

PER MANISH AGARWAL, AM : The present appeal is filed by assessee against the order dated 17.06.2025 passed by Ld. Commissioner of Income Tax (A)-30, New Delhi [“Ld. CIT(A)”] in Appeal No. CIT(A), Delhi-5/10256/2017-18 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 29.12.2017 passed u/s 143(3) of the Act pertaining to Assessment Year 2015-16. 2. Brief facts of the case are that assessee company has filed its return of income on 28.09.2015, declaring total income of INR 5,09,130/-. The case was selected under limited scrutiny and notice u/s 143(2) followed by statutory notices issue

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