MANHAR YARNS PRIVATE LIMITED,BALLABGARH vs. ITO WARD-1(5), FARIDABAD

ITA 97/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 as per Rule 11UA and enhancing the income. The Tribunal allowed the appeal on this ground, deleting the enhancement made by the CIT(A).

What were the facts?

The assessee company received share capital and premium, which the Assessing Officer treated as unexplained under Section 68. The CIT(A) confirmed this addition and also enhanced the income under Section 56(2)(viib) by rejecting the assessee's valuation report.

What were the issues?

Whether the addition under Section 68 for share premium is justified when the assessee provided documentary evidence, and whether the CIT(A) can reject a valuation report obtained under Rule 11UA without a specific enabling provision.

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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Cases cited in this judgment(10)Show list

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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 23/03/2020

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

year 2016-17. There is a delay of 23 days for filing the present Appeal, the days of delay involved in filing the a

The order continues below.

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