ASST. COMMISSIONER OF INCOME TAX, MUMBAI vs. AADHAAR WHOLESALE TRADING AND DISTRIBUTION LTD., MUMBAI

ITA 2646/MUM/2023Status: DisposedITAT Mumbai05 April 2024AY 2017-1834 pages
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What did the Tribunal hold?

The Tribunal held that the AO had sufficient reason to reopen the assessment. However, it found that the assessee had provided a valuation report and other documents to justify the share premium. The Tribunal also noted that the valuation of shares is a commercial decision between parties.

What were the facts?

The Assessing Officer (AO) reopened the assessment of Aadhaar Wholesale Trading and Distribution Ltd. to examine a large share premium received and interest paid to its holding company. The AO questioned the genuineness of the share premium due to the company's accumulated losses and lack of a valuation report.

What were the issues?

The primary issues were the validity of reopening the assessment and the addition of share premium under Section 68 of the Income Tax Act, 1961, where the assessee failed to provide a satisfactory explanation for the premium amount.

Which sections of the Income-tax Act were involved?

Section 68,Section 147,Section 56(2)(viib)

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Cases cited in this judgment(5)Show list

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Heard together (6 matters)

ITA No. 2653/Mum/2023
ITA No. 2635/Mum/2023
ITA No. 2651/Mum/2023
ITA No. 2650/Mum/2023
ITA No. 2646/Mum/2023
C.O. No. 119/Mum/2023

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI, S RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No. 2635/Mum/2023 (A.Y. 2012-13) ITA No. 2650/Mum/2023 (A.Y. 2014-15) ACIT-1(1)(1) 579, Aaykar Bhavan, M. K. Road, Mumbai-400020 Vs. M/s. Aadhaar Wholesale Trading and Distribution Ltd.

Knowledge House, Shyam Nagar, JV Link Road, Jogeshwari-East, S.O., Mumbai-400060 स्थायी लेखा सं./जीआइआर सं./ PAN/GIR No: AAFCA8793G Appellant .. Respondent C.O. No. 119/Mum/2023 (Arising out of ITA No. 2653/Mum/2023) (A.Y. 2011-12) M/s. Aadhar Wholesale Trading and Distribution Ltd.

Knowledge House, Shyam Nagar, JV Link Road, Jogeshwari-East, S.O., Mumbai-400060 Vs. ACIT-1(1)(1) 579, Aaykar Bhavan, M. K. Road, Mumbai-400020 स्थायी लेखा सं./जीआइआर सं./ PAN/GIR No: AAFCA8793G Appellant .. Respondent ITA No. 2653, 2635, 2651, 2650, 2646 & CO. 119/Mum/2023 AY 2011-12, 2012-13, 2013-14, 2014-15, 2017-18 & 2011-12 Aadhaar Wholesale Trading And Distribution Ltd.

Appellant by : Shri. Madhur Agrawal Respondent by : Shri. Ajay Chandra & Shri. Manoj Kumar Sinha

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