NELUMBO PAINTS PVT. LTD.,HARYANA vs. ITO WARD 2(1), HARYANA

ITA 85/DEL/2021Status: DisposedITAT Delhi20 June 2023AY 2016-1722 pages
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What did the Tribunal hold?

The Tribunal held that the CIT(A) erred in rejecting the valuation report obtained by the assessee as per the prescribed method under Rule 11UA. The Tribunal also noted that the investor companies had responded to notices and provided necessary documents, and the AO had not established the lack of creditworthiness or genuineness of the transactions.

What were the facts?

The assessee's case was selected for limited scrutiny, and the Assessing Officer (AO) made an addition of Rs. 93,00,000 under Section 68 for alleged unexplained share premium and capital. The CIT(A) dismissed the assessee's appeal and enhanced the income by Rs. 62,00,000 under Section 56(2)(viib) by rejecting the valuation report.

What were the issues?

Whether the addition made under Section 68 for share premium and capital was justified, and whether the CIT(A) erred in enhancing income by rejecting the valuation report under Section 56(2)(viib).

Which sections of the Income-tax Act were involved?

Section 68,Section 56(2)(viib),Section 251(1),Section 271(1)(c)

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Income Tax Appellate Tribunal, [ DELHI BENCH: ‘E’ NEW DELHI ]

Before: DR. B. R. R. KUMAR & SHRI YOGESH KUMAR U.S.

For Appellant: Adv &
Hearing: 05.06.2023Pronounced: 20.06.2023

PER YOGESH KUMAR U.S., JM

This appeal is filed by the assessee against the order dated 17/03/2020

passed by the CIT (A)-Faridabad, (hereinafter referred to ‘CIT(A)’ for assessment

year 2016-17. There is a delay of 19 days for filing the present Appeal, the days of delay involved

The order continues below.

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