25FPS MEDIA PVT. LTD.,MUMBAI vs. ITO ,RANGE -6(3)(1), MUMBAI

In the result, the appeal filed by the assessee is hereby allowed and the appeal filed by the revenue is hereby dismissed

Bench: Shri Amarjit Singh, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No. 2798/Mum/2018 (निर्धारण वर्ा / Assessment Year:2012-13) Ito, Range-6(3)(1) बिधम/ 25Fps Media Pvt. Ltd. Room No.524, 5Th Floor, 18Th Floor, Marathon Futurex, Vs. Aayakar Bhavan, Mumbai- N. M. Joshi Marg, Lower 400020. Parel, Mumbai-400013. & आयकर अपील सं/ I.T.A. No. 3085/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2012-13) बिधम/ 25Fps Media Pvt. Ltd. Ito, Range-6(3)(1) 18Th Floor, Marathon Futurex, Room No.524, 5Th Floor, Vs. N. M. Joshi Marg, Lower Aayakar Bhavan, Mumbai- Parel, Mumbai-400013. 400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacz2076J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Percy Pardiwala & Madhur Aggarwal Revenue By: Shri Achal Sharma (Dr) सुनवाई की तारीख / Date Of Hearing: 27/01/2022 घोषणा की तारीख /Date Of Pronouncement: 02/03/2022 आदेश / O R D E R Per Amarjit Singh (Jm): The Assessee As Well As Revenue Have Filed The Above Mentioned Appeals Against The Order Dated 28.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2012-13. Ita. No.2798/Mum/2018 2. The Revenue Has Filed The Present Appeal Against The Order Dated 28.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai Relevant To The A.Y.2012-13. 3085/M/2018 A.Y. 2012-13 3. The Revenue Has Raised The Following Grounds: -

viia) as already discussed earlier, the same was not chargeable to income tax in the hands of the recipient under the head Income from Other Sources under the provisions of section 56(1) also, in view of the legal position as explained in the Explanatory Notes to the provisions of the Finance Act, 2017 contained in Circular No. 2/2018

ITO 6(3)(1), MUMBAI vs. 25 FPS MEDIA PVT. LTD. , MUMBAI

In the result, the appeal filed by the assessee is hereby allowed and the appeal filed by the revenue is hereby dismissed

Bench: Shri Amarjit Singh, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No. 2798/Mum/2018 (निर्धारण वर्ा / Assessment Year:2012-13) Ito, Range-6(3)(1) बिधम/ 25Fps Media Pvt. Ltd. Room No.524, 5Th Floor, 18Th Floor, Marathon Futurex, Vs. Aayakar Bhavan, Mumbai- N. M. Joshi Marg, Lower 400020. Parel, Mumbai-400013. & आयकर अपील सं/ I.T.A. No. 3085/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2012-13) बिधम/ 25Fps Media Pvt. Ltd. Ito, Range-6(3)(1) 18Th Floor, Marathon Futurex, Room No.524, 5Th Floor, Vs. N. M. Joshi Marg, Lower Aayakar Bhavan, Mumbai- Parel, Mumbai-400013. 400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacz2076J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Percy Pardiwala & Madhur Aggarwal Revenue By: Shri Achal Sharma (Dr) सुनवाई की तारीख / Date Of Hearing: 27/01/2022 घोषणा की तारीख /Date Of Pronouncement: 02/03/2022 आदेश / O R D E R Per Amarjit Singh (Jm): The Assessee As Well As Revenue Have Filed The Above Mentioned Appeals Against The Order Dated 28.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2012-13. Ita. No.2798/Mum/2018 2. The Revenue Has Filed The Present Appeal Against The Order Dated 28.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai Relevant To The A.Y.2012-13. 3085/M/2018 A.Y. 2012-13 3. The Revenue Has Raised The Following Grounds: -

viia) as already discussed earlier, the same was not chargeable to income tax in the hands of the recipient under the head Income from Other Sources under the provisions of section 56(1) also, in view of the legal position as explained in the Explanatory Notes to the provisions of the Finance Act, 2017 contained in Circular No. 2/2018

CABLE CORPORATION OF INDIA LTD,MUMBAI vs. DCIT CIRCLE 2(1), MUMBAI

In the result, the appeal of the assessee is allowed

Bench: Shri Rajesh Kumar & Shri Amarjeet Singhassessment Year: 2010-11

section 56(2) (viia) as under ; “13.2. These are anti – abuse provisions which are applicable only if an individual or an HUF is the recipient. Therefore, transfer of shares of a company to a firm or a company, instead of an individual or an HUF, without consideration or at a price

NERKA CHEMICALS P. LTD,GUJRAT vs. ASST CIT CEN CIR 38, MUMBAI

In the result this ground of appeal is allowed for statistical purpose

Bench: Shri R.C. Sharma, Accountant Mamber & Shri Pawan Singh

section 56(2) (viia) as under ; “13.2. These are anti – abuse provisions which are applicable only if an individual or an HUF is the recipient. Therefore, transfer of shares of a company to a firm or a company, instead of an individual or an HUF, without consideration or at a price

DIRECT MEDIA DISTRIBUTION VENTURES PVT. LTD.,MUMBAI vs. ITO , RG-6(2)(3)(PRESENT IN CHARGE ACIR-RG-6(2)(2), MUMBAI

In the result, appeal of the revenue dismissed and appeal of the assessee is also dismissed

Bench: Shri Amit Shukla, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No.2715/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2012-13) The Assistant Commissioner Direct Media Distribution Of Income Tax 6(2)(2), Ventures Pvt. Ltd. बिधम/ Mumbai 135, Continental Building, Vs. Aayakar Bhavan, M.K.Road, Annie Besant Road, Worli, Churchgate, Mumbai-400 020 Mumbai-400 048 स्थायीलेखासं./जीआइआरसं./Pan No. Aadcd1940Q (अपीलाथी/Appellant) (प्रत्यथी / Respondent) :

price of ₹ 60/- per share. Dish TV India Ltd is also a company forming part of Essel group of companies and it is engaged in the business of providing DTH services. Dish TV India Ltd is a company in which public are substantially interested and its shares are listed in the Bombay Stock Exchange and National Stock Exchange

ACIT - CIRCLE- 6(2)(2), MUMBAI vs. DIRECT MEDIA DISTRIBUTION VENTURES PVT. LTD., MUMBAI

In the result, appeal of the revenue dismissed and appeal of the assessee is also dismissed

Bench: Shri Amit Shukla, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No.2715/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2012-13) The Assistant Commissioner Direct Media Distribution Of Income Tax 6(2)(2), Ventures Pvt. Ltd. बिधम/ Mumbai 135, Continental Building, Vs. Aayakar Bhavan, M.K.Road, Annie Besant Road, Worli, Churchgate, Mumbai-400 020 Mumbai-400 048 स्थायीलेखासं./जीआइआरसं./Pan No. Aadcd1940Q (अपीलाथी/Appellant) (प्रत्यथी / Respondent) :

price of ₹ 60/- per share. Dish TV India Ltd is also a company forming part of Essel group of companies and it is engaged in the business of providing DTH services. Dish TV India Ltd is a company in which public are substantially interested and its shares are listed in the Bombay Stock Exchange and National Stock Exchange

SILGATE SOLUTIONS LIMITED,MUMBAI vs. DCIT-3(2)(1), MUMBAI

In the result, the appeal of the assessee is allowed

Bench: or at the time of hearing of the matter with the Income Tax Appellate Tribunal." 2. The assessee is a company engaged in the business of international call centre. The assessee filed a return of income for AY 2013-14 on 24.10.2013, declaring total income of Rs.92,36,060/-. The case was selected for scrutiny and statutory notices were duly served on the assessee. During the assessment proceedings the AO noticed that there was change in the shareholding pattern of the assessee wherein the ass

price of shares amounting to Rs.82.89 lakhs as income of the assessee u/s. 56(2)(viia) of the Act. The Ld. CIT (A) also confirmed the same. 25. The Ld A.R submitted that the Income tax Act was amended by inserting a new clause in sec. 2(22) of the Act and also by inserting sec.46A, consequent to the insertion

DCIT 6 (3)(2), MUMBAI vs. M/S KILITCH HEALTHCARE INDIA LTD., MUMBAI

In the result Revenue’s appeal is dismissed and assessee’s cross objection is held to be infructuous

viia) of the Act. 4. Apropos issue of addition under section 56(2)(vii)(b) of the Act :- During the course of assessment proceedings the AO observed that the assessee issued 4,20,000 shares of Rs.10 each at a premium of Rs.990 to Vulcan Developers Pvt. Ltd (VDPL) during the year under consideration. The Assessing Officer opined that since

TOPSGRUP ELECTRONICS SYSTEMS LTD,MUMBAI vs. ITO WD 8(3)(3), MUMBAI

In the result, the assessee’s appeal for assessment year 2009-10 is allowed as indicated above

Bench: Shri Jason P. Boaz & Shri Amit Shuklam/S. Topsgrup Electronic Systems Income Tax Officer-8(3)(3) Ltd. (Previsously Tops Sequipment Ltd.) Àayakar Bhavan, M.K. Road 5, Royal Palms Golf & Country Club Vs. Mumbai 400020 Aarey Milk Colony, Goregaon (E) Mumbai 400065 Pan - Aaact3291K Appellant Respondent

viia) envisages. It is argued that the same also does not fall within the ambit of the provisions of section 56(2)(viib) of the Act as this section covers the issue of shares, whereas the assessee has made an investment in shares. It is contended that in the above circumstances, Indian TP provisions are not applicable either to Vodafone

DY CIT. CIRCLE-1, THANE vs. M/S TRAVECOM GLOBAL P. LTD., BHAYANDER

In the result, appeal filed by the Revenue is dismissed

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bledcit – Circle 1 V. M/S. Travecom Global Pvt. Ltd., Room No. 22, B-Wing B/607, Krishnakunj 6Th Floor, Ashar I.T. Park Salasar Brij Bhoomi Wagle Industrial Estate Bhayander (W)-401101 Thane (W)-400604 Pan: Aaect8729Q (Appellant) (Respondent) Assessee By : Ms. Aarti Vissanji Department By : Shri B.K. Bagchi

viia) and similar provisions contained in s. 56(2) of the ctf being anti- abuse in nature ." Thus, the bona fide business transactions cannot be taxed under 56(2)(vii) and that the Provisions ofs. 56(2) were to strike at the generation and use of unaccounted money and '' was never intended the honest and bona fide transactions where consideration

TATVA GLOABAL ENVIRONMENT LTD,MUMBAI vs. ITO 9(3)(3), MUMBAI

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

Bench: Shri Pawan Singh & Shri Rajesh Kumartatva Global Environment Ltd Vs Ito-9(3)(3), (Now Known As Tatva Global Aayakar Bhawan, M.K. Road, Environment Pvt Ltd) Mumbai Uniphos House, C D Marg, Opp Madhu Park, Khar (W) Mumbai 400 052 Pan : Aaics1718A Appellant Respondednt Dcit, Cent.Cir.6(3), Vs Tatva Global Environment Ltd Mumbai (Now Known As Tatva Global Environment Pvt Ltd) Uniphos House, C D Marg, Opp Madhu Park, Khar (W) Mumbai 400 052 Pan : Aaics1718A Appellant Respondednt

transferable and did not have a ready market. 18. Without prejudice to his submission, the Ld.AR submits that provision of section 56(2)(viia) are anti abuse provision and intended to prevent the practice of receiving property without consideration or for inadequate consideration. Such provision should not be applied to a bonafide transaction and in absence of any imputation

FIRMENICH AROMATICS (INDIA) P. LTD,MUMBAI vs. ACIT 9(3)(1), MUMBAI

In the result, the appeal filed by the assessee is partly allowed

Bench: Shri G Manjunatha () & Shri Ravish Sood () Firmenich Aromatics (India) Vs Acit-9(3)(1), Mumbai Pvt Ltd, 9Th Floor, Arena Space, Cts 20, New Shyam Nagar Road, Behind Majas Bus Depot, Jogeshwari (E), Mumbai. Pan : Aaacf1621M Appellant Respondednt

56,10,095 instead of Rs. 1,07,84,304, thereby computing an adjustment of Rs. 51,74,209. 3.2. While doing so, the Hon'ble DRP/ Ld. AO/ Ld. TPO erred in: (a) Not following a structured/ methodical search process in selecting the comparable companies for arriving at the arm's length interest rate; (b) Not appreciating the fact

DCIT 1(2)-2, MUMBAI vs. OZONELAND AGRO P.LTD, MUMBAI

transferred their shareholdings to the assessee at Re.1 per share. He observed that when the market rate is Rs.75.49 ps, the assessee has purchased the shares at less than the market price i.e., Re.1 per share and therefore, the transactions attract provisions of section 56(2)(viia

TPG GROWTH II MAKETS PTE LTD.,MUMBAI vs. DCIT 4(1)(2), MUMBAI

Accordingly, Ground No. 4 raised by the Appellant is partly allowed

transfer pricing adjustment of INR 83,60,61,408/-. In the Draft Assessment Order, dated 15/06/2021, the Assessing Officer proposed an addition of INR 83,60,61,408/- under Section 56(2)(viia

M/S.KARMIC LABS PRIVATE LIMITED,MUMBAI vs. INCOME TAX OFFICER 15(2)(1), MUMBAI

In the result, appeal filed by the assessee is allowed

Bench: Shri Rajesh Kumar & Shri Amarjit Singhassessment Year: 2014-15 Karmic Labs Pvt.Ltd. Ito,Ward-15(2)(1) B-1, 2302, The Address, Opposite Aaykar Bhawan Vs. R-City Mall, Lbs Marg M.K.Road Ghatkopar(West) Mumbai-400 020 Mumbai-400 086

transferred their shareholdings to the assessee at Re.1 per share. He observed that when the market rate is Rs.75.49 ps, the assessee has purchased the shares at less than the market price i.e., Re.1 per share and therefore, the transactions attract provisions of section 56(2)(viia

LUPIN INVESTMENTS PRIVATE LIMITED (SUCCESSOR TO ZYMA LABORATORIES LIMITED),MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX - 14(2)(1), MUMBAI

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

Section 56(2)(viia) of the Act do not apply on the facts of the case and placed strong reliance on other decisions of the Co-ordinate Benches.\nPer contra, the ld. D/R strongly supported the findings of the ld. CIT(A) and read the operative part of the decision of the ld. CIT(A).\n8. We have carefully considered

JSW LOGISTICS INFRASTRUCTURE PVT. LTD.,MUMBAI vs. DCIT - 5 (2)(1), MUMBAI

In the result, the appeal filed by the assessee is allowed

Bench: Shri S. Rifaur Rahman () & Shri Pavan Kumar Gadale () Assessment Year: 2014-15 M/S Jsw Logistics Infrastructure Pvt. Ltd., Dcit-5(2)(1), Jsw Centre, Bandra Kurla Complex, Vs. Mumbai. Bandra (E), Mumbai-400051. Pan No. Aaccj 5104 F Assessee Respondent

prices much below their fair market value. In the instance above, the shares of JSW Projects Limited are neither transferred nor they are allotted at much below FMV. On the other way round, the law (i.e., section 56 (2) (viib) of the Act) itself prohibits the private limited complainer from issuing shares in excess of the face value of shares

DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(4), MUMBAI vs. SAMAGRA WEALTHMAX PRIVATE LIMITED , MUMBAI

In the result, appeal of the learned AO is dismissed

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Dy. Commissioner Of Samagra Wealthmax Income Tax, Private Limited, Central Circle-3(4) 5Th Floor, Sunteck Centre Room No. 1915, 19Th 37-40 Vs. Floor, Subhash Road, Air India Building, Vile Parle East, Nariman Point, Mumbai-400 057 Mumbai-400021 (Appellant) (Respondent) Pan No. Aaqcs5451E

price paid by assessee and FMV of shares as income of assessee under section 56(2)(viia) of The Act. We find that order of Vertex Projects LLp deals with the addition made u/s 56(2)(viia) of the Act. In this regard, it is submitted that section 56(2)(viia) is applicable from 01.06.2010 to 31.03.2017. 023. Provision