TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>ITAT remands case for fresh assessment after Supreme Court judgment on section 68 share premium addition</h1> <h3>M/s. Devas Multimedia Pvt. Ltd. Versus DCIT Circle-1 (1) (1) Bangalore, ACIT Circle-2 (1) (2) Bangalore, PCIT Bangalore-2 Bangalore</h3> M/s. Devas Multimedia Pvt. Ltd. Versus DCIT Circle-1 (1) (1) Bangalore, ACIT Circle-2 (1) (2) Bangalore, PCIT Bangalore-2 Bangalore - TMI Issues Involved:1. Transfer Pricing Adjustments2. Addition towards Corporate Tax3. Invoking of Revisionary Jurisdiction under Section 2634. Invoking Provisions of Section 68 regarding Share PremiumSummary:Transfer Pricing Adjustments and Addition towards Corporate Tax:The assessee, engaged in Satellite Multimedia Services, challenged the Transfer Pricing adjustments and additions towards corporate tax for the assessment years 2007-08, 2008-09, 2010-11, 2011-12, 2012-13, 2013-14, and 2014-15. The Tribunal noted that the lower authorities' orders were passed before the Supreme Court's judgment in the assessee's own case (Civil Appeal No.5766 of 2021 dated 17.01.2022). The Supreme Court found no perversity in the findings of the NCLT and NCLAT, which were based on undisputed documents and facts. The Tribunal decided to remit these issues back to the Assessing Officer for de-novo consideration in light of the Supreme Court's judgment.Invoking of Revisionary Jurisdiction under Section 263:For the assessment year 2009-10 (ITA No.158/Bang/2020), the assessee challenged the order of the Principal Commissioner of Income Tax (PCIT) passed under Section 263 of the Income Tax Act, 1961. The PCIT had remitted the issue to the Assessing Officer to verify the creditworthiness of the shareholders and the valuation of the shares regarding the share premium received by the assessee. Since the Tribunal remitted various issues in dispute for the assessment year 2009-10 back to the Assessing Officer for de-novo consideration, the order passed by the PCIT under Section 263 was deemed infructuous. Consequently, the appeal for this year was dismissed as infructuous.Conclusion:The appeals related to Transfer Pricing adjustments and corporate tax additions for the assessment years 2007-08, 2008-09, 2010-11, 2011-12, 2012-13, 2013-14, and 2014-15 were partly allowed for statistical purposes and remitted back to the Assessing Officer for de-novo consideration. The appeal for the assessment year 2009-10 was dismissed as infructuous due to the remittance of related issues for de-novo consideration.
TaxTMI 
TaxTMI 
