MIRA MAHAL PREMISES MANAGEMENT PVT. LTD.,MUMBAI vs. CIT (A)- 4 , MUMBAI

ITA 7158/MUM/2018Status: DisposedITAT Mumbai02 February 2024AY 2014-15Bench: SHRI NARENDER KUMAR CHOUDHRY (Judicial Member), MS PADMAVATHY S (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the AO incorrectly used the book value as of March 31, 2011, but also noted that the assessee failed to provide sufficient evidence to substantiate its valuation. Therefore, the issue was remitted back to the AO for a fresh examination.

What were the facts?

The assessee issued shares at a premium, and the Assessing Officer (AO) invoked Section 56(2)(viib) by revaluing the shares based on book value as of March 31, 2011, instead of the valuation date. The assessee argued that the valuation should be based on a later date and a completed project.

What were the issues?

Whether the fair market value of shares for the purpose of Section 56(2)(viib) should be determined based on the book value as of March 31, 2011, or the actual valuation date, and whether the assessee provided adequate evidence for its valuation.

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, “D” BENCH, MUMBAI

Before: SHRI NARENDER KUMAR CHOUDHRY, JM &

For Appellant: Shri Bhavin Gala, CA, Shri Mahita Nair, Sr. DR
For Respondent: Shri Mahita Nair, Sr. DR
Hearing: 02.02.2024

Per Padmavathy S, AM: This appeal is against the order of the Commissioner of Income Tax, (Appeals)-44, Bangalore [in short 'the CIT(A)] dated 24.09.2017 for the AY 2014-

15.2.

The assessee is engaged in the business of construction, development and management of hotel. The assessee filed the return of income on 20.11.2014 for AY 2014-15 declaring a loss of Rs. 95,28,037/-. The case was selected for scrutiny and the statutory notices were duly served on the assessee. The AO during the M/s Mira Mahal Premises Management Pvt. Ltd.

course of assessment noticed that the assessee has issued shares

The order continues below.

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