M/S FLUTURA BUSINESS SOLUTIONS PRIVATE LIMITED ,BANGALORE vs. THE INCOME TAX OFFICER WARD-3(1)(1), BANGALORE

In the result, the appeal is allowed for statistical purpose

Bench: Shri N.V.Vasudevan & Shri B.R.Baskaranita No.3404(Bang)/2018 (Assessment Year : 2013-14) M/S Flutura Business Solutions Pvt.Ltd., G-1, Gurupriya Seventh Hill, Bg 12/2/13, 4Th Cross, Iti Hbcs Layout, Bsk 3Rd Stage, Bengaluru-560 004 Pan No.Aabcf9125B Appellant Vs The Income Tax Officer, Ward-3(1)(1), Room No.209, 2Nd Floor, Bmtc Building, Koramanagala, Bangalore Respondent Appellant By : Shri C.Ramesh, Ca Revenue By : Shri Priyadharshini Misra, Addl.Cit

section 56(2)(viib) of the Act. The computation of the Assessing Officer is as under: - Rs. Income as per return before setoff 13,55,467 Add: Income from other sources (U/s.56(2)(viib)) 2,29,31,200 ----------------- 2,42,86,667 Less: Unabsorbed depreciation

RAAJRATNA ENERGY HOLDINGS PRIVATE LIMITED,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BANGALORE

viib) of sub-section (2) of\nsection 56 shall be the value, on the valuation date, of\nsuch unquoted equity shares, as shall be determined\nunder sub-clause (a), sub-clause (b), sub-clause (c) or\nsub-clause (e), at the option of the assessee, where the\nconsideration received by the assessee is from a resident\n; and under

RAAJRATNA ENERGY HOLDINGS PRIVATE LIMITED,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2(2), BENGALURU

Accordingly, this\nground is allowed for statistical purposes

viib) of sub-section (2) of\nsection 56 shall be the value, on the valuation date, of\nsuch unquoted equity shares, as shall be determined\nunder sub-clause (a), sub-clause (b), sub-clause (c) or\nsub-clause (e), at the option of the assessee, where the\nconsideration received by the assessee is from a resident\n; and under

WRITEMEN MEDIA PRIVATE LIMITED,BENGALURU vs. INCOME TAX OFFICER,WARD-7(1)(3), BENGALURU

In the result, appeal filed by the assessee is allowed for statistical purposes

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubeyassessment Year : 2014-15

Section 56(2)(viib) of the Act by the Finance Bill, 2024, the government has decided to sun-set the provisions w.e.f. AY 2025-26, considering that the government itself has decided to remove the provision, the addition be kindly deleted given the fact that the premium collected by the appellant is justified and as per the prescribed rules

M/S. MOBICOM TECHNOLOGIES PRIVATE LIMITED,BANGALORE vs. INCOME-TAX OFFICER, WARD-4(1)(4) , BANGALORE

In the result, the appeal filed by the assessee stands dismissed

Bench: Shri Chandra Poojari & Ms. Madhumita Royassessment Year : 2016-17

viib) of sub-section (2) of section 56 shall be the value, on the valuation date, of such unquoted equity shares as determined in the following manner under clause (a) or clause (b), at the option of the assessee, namely: - the fair market value of unquoted equity Page 4 1. Shares = (A-L) x (PV) (PE) where, A = book value

M/S. FINWIZARD TECHNOLOGY PVT LTD., ,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE- 1(2)(1) , BANGALORE

In the result, the appeal is allowed for statistical purpose

Bench: Smt. Beena Pillai & Sri Laxmi Prasad Sahuassessment Year: 2016-17

viib) of sub-section (2) of section 56 shall be the value, on the valuation date, of such unquoted equity shares as determined in the following manner under clause (a) or clause (b), at the option of the assessee, namely:— Finwizard Technology Pvt. Ltd., Bangalore Page 11 of 13 the fair market value of unquoted equity shares

M/S SERENDIPITY INFOLABS PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-6(1)(1), BANGALORE

In the result appeal filed by assessee stands partly allowed for statistical purposes

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiassessment Year : 2015-16

depreciation on software under section 35D. 8.2. In respect of addition made under section 56(2)(viiib) of the Act Ld.CIT(A) agreed with Ld.AO and observed that the report prepared by the chartered accountant is based on information given by the management which is a self-serving document which cannot be relied on. 8.3. Before us, assessee

M/S SCANIA COMMERCIAL VEHICLES INDIA PVT LTFD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-6(1)(1), BANGALORE

The Appeal of the Assessee is allowed

Bench: Shri Prashant Maharishi, Vice – & Shri Keshav Dubey

section 56(2)(viib) does not apply on shares of the non-resident. Accordingly, we allow ground no. 3 and direct the Ld. Assessing Officer to delete the addition u/s. 56(2)(viib) of the Act of Rs. 198 crores. 30. Ground no. 4 is the adhoc disallowance made by the Ld. Assessing Officer on cost of vehicles, repairs expenditure

M/S KOTTARAM AGRO FOODS PVT LTD ,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX (OSD) , BANGALORE

In the result, both the appeals filed by the assessee are treated as allowed for statistical purposes

Bench: Shri George George K. & Shri B.R. Baskaranassessment Year: 2014-15

section 56(2)(viib) of the Act, then the A.O. may take appropriate decision in accordance with law,. Needless to mention, the assessee should be given adequate opportunity of being heard. 9. The assessee is contesting one more issue in assessment year 2014-15. The A.O. noticed that the assessee has claimed a sum of Rs.1,70,798/- as research

M/S KOTTARAM AGRO FOODS PVT LTD ,BANGALORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the result, both the appeals filed by the assessee are treated as allowed for statistical purposes

Bench: Shri George George K. & Shri B.R. Baskaranassessment Year: 2014-15

section 56(2)(viib) of the Act, then the A.O. may take appropriate decision in accordance with law,. Needless to mention, the assessee should be given adequate opportunity of being heard. 9. The assessee is contesting one more issue in assessment year 2014-15. The A.O. noticed that the assessee has claimed a sum of Rs.1,70,798/- as research

M/S INNOVITI PAYMENT SOLUTIONS PVT LTD ,BANGALORE vs. THE INCOME TAX OFFICER CIRCLE-3(1)(1), BANGALORE

In the result, the appeal of the assessee is allowed for statistical purposes

Bench: Shri A. K. Garodia & Shri Laliet Kumarm/S. Innoviti Payment Solutions Pvt. Ltd., Appellant No. 41, 2Nd & 3Rd Floor, Ngr The Edge, Iii Main, V Cross, Sai Baba Mandir Road, Halasuru, Bengaluru – 560008. Pan. Aabci0504M Vs The Ito, Ward – 3 (1) (1), Respondent Bengaluru. Assessee By : Shri B. M. Tambakar, C. A. Revenue By : Shri R. N. Sidappaji, Addl. Cit (Dr) Date Of Hearing : 07 – 12 – 2018 Date Of Pronouncement : 09 – 01 – 2019 O R D E R Per Bench: This Appeal Is Filed By The Assessee Which Is Directed Against The Order Of Cit (A) – 3, Bangalore Dated 23.02.2018 For A. Y. 2014 – 15. 2. The Grounds Raised By The Assessee Are As Under:- “1. Grounds Relating To Natural Justice The Learned Income Tax Officer 3(1)(1) (Hereinafter " Ad") & The Learned Commissioner Of Income Tax (Appeals) - 3 (Hereinafter "Cit-A") Have Erred In Passing The Order Without Considering All The Submissions & / Or Without Appreciating Properly The Facts & Circumstances Of The Case & Law Applicable. 2. Grounds Relating To Rejection Of Equity Shares Valuation Report Issued By Independent Chartered Accountant The Order Of The Learned Ao Passed Under Section 143(3) Of The Income Tax Act, 1961 (`The Act') & Confirmed By Learned Cit-A Is Erroneous In Reckoning That Share Premium Collected Is Above Fair Market Value & Thereby Liable To Tax In Pursuance To Section 56(2)(Viib) By Adopting Rule 11Ua(A) To The Exclusion Of The Option Under Rule 11Ua(B) As Opted By The Assessee Without Taking

viib) of sub-section (2) of section 56 shall be the value, on the valuation date, of such unquoted equity shares as determined in the following manner under clause (a) or clause (b), at the option of the assessee, namely:— (a) the fair market value of unquoted equity shares = (A-L) X (PV), (PE) where, A = book value

VALENCIA NUTRITION LIMITED (EARLIER KNOWN AS VALENCIA NUTRITION PRIVATE LIMITED),BANGALORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 7(1)(2), BANGALORE

In the result, the appeal is allowed for statistical purpose

Bench: Shri George George K.And Shri B.R. Baskaran

viib) of sub-section (2) of section 56 shall be the value, on the valuation date, of such unquoted equity shares as determined in the following manner under clause (a) or clause (b), at the option of the assessee, namely:— (a) the fair market value of unquoted equity shares = where, (A–L) × (PV), (PE) A = book value of the assets

VALENCIA NUTRITION LIMITED (EARLIER KNOWN AS VALENCIA NUTRITION PRIVATE LIMITED),BANGALORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 7(1)(2), BANGALORE

In the result, the appeal is allowed for statistical purpose

Bench: Shri George George K.And Shri B.R. Baskaran

viib) of sub-section (2) of section 56 shall be the value, on the valuation date, of such unquoted equity shares as determined in the following manner under clause (a) or clause (b), at the option of the assessee, namely:— (a) the fair market value of unquoted equity shares = where, (A–L) × (PV), (PE) A = book value of the assets

M/S. FORTIGO NETWORK LOGISTICS PRIVATE LIMITED,BENGALURU vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE- 3(1)(1), BENGALURU

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2016-17

viib) of sub-section (2) of section 56 shall be the value, on the valuation date, of such unquoted equity shares as determined in the following manner under clause (a) or clause (b), at the option of the assessee, namely:— (a) the fair market value of unquoted equity shares = where, (A–L) × (PV), (PE) A = book value of the assets

M/S TALLY SOLUTIONS PVT. LTD.,,BANGALORE vs. ACIT, BANGALORE

In the result, the appeal of the assessee is partly allowed

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

56(2) (viib) of the Act. Thus such capital account transaction not falling within a statutory exception cannot be brought to tax as already discussed herein above while considering the challenge to the grounds as mentioned in the impugned order. 39. In tax jurisprudence, it is well settled that following four factors are essential ingredients to a taxing statute

M/S. VBHC VALUE HOMES PRIVATE LIMITED,BANGALORE vs. INCOME TAX OFFICER, WARD - 7(1)(3), BANGALORE

In the result, appeal of the assessee for Assessment Year 2016-17 is partly allowed in the terms indicated above

Bench: Shri A. K. Garodia & Smt. Beena Pillaiappeal No. & Appellant Respondent Assessment Year M/S. Vbhc Value Homes Pvt. Ltd., Income Tax Officer, 2015-16 74-75 Millers Road, Vasanthnagar, Ward – 7(1)(3), Bengaluru – 560 052. Bengaluru. Pan : Aaccv 7868 G The Assistant Commissioner 2016-17 -Do- Of Income Tax, Ward – 7(1)(2), Bengaluru. S.P. No. & Appellant Respondent Assessment Year 29/Bang/2020 M/S. Vbhc Value Homes Income Tax Officer, 2015-16 Pvt. Ltd., Ward – 7(1)(3), (In Ita No.2541/Bang/2019) Pan : Aaccv 7868 G Bengaluru. 59/Bang/2020 -Do- The Assistant Commissioner 2016-17 Of Income Tax, (In Ita No. 37/Bang/2020) Ward – 7(1)(2), Bengaluru. Assessee/S.P. By : Shri. S. Ramasubramanian, Ca Revenue By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 10/06/2020 Date Of Pronouncement : 12/06/2020 O R D E R Per A. K. Garodia

56(2) (viib) of the Act on the ground that the value of the shares issued exceeds the fair market value per share. ITA No. 37/Bang/2020 S. P. Nos. 29 and 59/Bang/2020 Page 3 of 18 3.2. That the learned Commissioner of Income Tax (Appeals) ought to have held that the assessing officer has no jurisdiction to go beyond

M/S. VBHC VALUE HOMES PRIVATE LIMITED,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, WARD- 7(1)(2), BANGALORE

In the result, appeal of the assessee for Assessment Year 2016-17 is partly allowed in the terms indicated above

Bench: Shri A. K. Garodia & Smt. Beena Pillaiappeal No. & Appellant Respondent Assessment Year M/S. Vbhc Value Homes Pvt. Ltd., Income Tax Officer, 2015-16 74-75 Millers Road, Vasanthnagar, Ward – 7(1)(3), Bengaluru – 560 052. Bengaluru. Pan : Aaccv 7868 G The Assistant Commissioner 2016-17 -Do- Of Income Tax, Ward – 7(1)(2), Bengaluru. S.P. No. & Appellant Respondent Assessment Year 29/Bang/2020 M/S. Vbhc Value Homes Income Tax Officer, 2015-16 Pvt. Ltd., Ward – 7(1)(3), (In Ita No.2541/Bang/2019) Pan : Aaccv 7868 G Bengaluru. 59/Bang/2020 -Do- The Assistant Commissioner 2016-17 Of Income Tax, (In Ita No. 37/Bang/2020) Ward – 7(1)(2), Bengaluru. Assessee/S.P. By : Shri. S. Ramasubramanian, Ca Revenue By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 10/06/2020 Date Of Pronouncement : 12/06/2020 O R D E R Per A. K. Garodia

56(2) (viib) of the Act on the ground that the value of the shares issued exceeds the fair market value per share. ITA No. 37/Bang/2020 S. P. Nos. 29 and 59/Bang/2020 Page 3 of 18 3.2. That the learned Commissioner of Income Tax (Appeals) ought to have held that the assessing officer has no jurisdiction to go beyond

M/S. TE CONNECTIVITY SERVICES INDIA PRIVATE LIMITED,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(1), BANGALORE

In the result, the appeal by the assessee is partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A No.300/Bang/2021 Assessment Year : 2016-17

section 55 of the Act, in relation to the meaning of 'cost of acquisition' etc. This amendment recognizes that depreciation on goodwill in relation to the years prior to April 1, 2021 may have been claimed and allowed and provides for a mechanism for the adjustment of such depreciation claimed and allowed, for determining the cost of acquisition

M/S I-EXCEED TECHNOLOGY SOLUTIONS PVT LTD ,BANGALORE vs. INCOME TAX OFFICER WARD-3(1)(1), BANGALORE

In the result, the appeal is allowed for statistical purpose

Bench: Shri N.V. Vasudevanand Shri B.R. Baskaran, Accoutant Member Assessment Year: 2014-15

viib) of sub-section (2) of section 56 shall be the value, on the valuation date, of such unquoted equity shares as determined in the following manner under clause (a) or clause (b), at the option of the assessee, namely:— (a) the fair market value of unquoted equity shares = where, (A–L) × (PV), (PE) M/s. I-Exceed Technology Solutions