SECUREINTELI TECHNOLOGIES PVT. LTD.,COIMBATORE vs. DCIT, CORPORATE CIRCLE-1,, COIMBATORE

The assessee is company and filed the return of income for AY 2022- 23 on 07.11.2022 declaring total income of Rs.1,66,03,040/-. During the year under consideration, the assessee has issued 1,43,360 shares whose face value Secureinteli Technologies Pvt. Ltd. :- 2 -: is Rs.10/share at a premium of Rs.270.50/share to M/s.Accel Limited. The Assessing Officer (AO) called on the assessee to furnish the valuation report in support of the valuation of shares. Since the assessee did not furnish any further details, the AO completed the assessment by adding the entire premium amount as addition u/s.56(2)(viib) of the Act. Aggrieved the assessee filed further appeal before the CIT(A). The CIT(A) upheld the addition stating that the valuation report furnished by the assessee before him, is that of a different entity M/s.Bizbarta Technologies India Pvt Ltd. The assessee is in appeal before the Tribunal against the order of the CIT(A).

We heard the parties and perused the material on record. The AO made an addition u/s.56(2)(viib) towards shares issued at a premium for the reason that the assessee has not substantiated the premium with a valuation report. The CIT(A) upheld the addition on the ground that the valuation report furnished by the assessee pertain to a different entity. During the course of hearing the ld AR submitted that name of the assessee company is changed from M/s.Bizbarta Technologies India Pvt Ltd. to the present name i.e. Secureinteli Technologies Pvt. Ltd. The ld AR in this regard submitted the certificate incorporation issued in the present name of the assessee stating that the name has undergone change. The ld AR also submitted that the assessee furnished the valuation report in the erstwhile name of the assessee which has been rejected by the CIT(A) stating that the valuation report is that of a different entity. From the perusal of the records and the findings of the CIT(A), it is clear that the CIT(A) has rejected the valuation report submitted by the assessee based on the misunderstood fact and that the valuation report submitted in the name of M/s.Bizbarta Technologies India Pvt Ltd is that of the assessee. Accordingly we are of the view that the CIT(A) is not correct in Secureinteli Technologies Pvt. Ltd. :- 3 -: