Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
The ITAT directed the AO to conduct a fresh assessment u/s 263 to determine the Fair Market Value (FMV) of shares issued u/s 56(2)(viib). Existing shareholders received substantial shares at a premium, with only a few new subscribers. Citing a precedent, it was found that taxing excessive premium on shares issued to existing shareholders is not applicable as no income accrues to them. The AO's actions were not erroneous or prejudicial to revenue. The Pr.CIT's revisional action lacked jurisdiction under Section 263, leading to the appeal being allowed, canceling the revisional order and restoring the AO's decision.
The ITAT directed the AO to conduct a fresh assessment u/s 263 to determine the Fair Market Value (FMV) of shares issued u/s 56(2)(viib). Existing shareholders received substantial shares at a premium, with only a few new subscribers. Citing a precedent, it was found that taxing excessive premium on shares issued to existing shareholders is not applicable as no income accrues to them. The AO's actions were not erroneous or prejudicial to revenue. The Pr.CIT's revisional action lacked jurisdiction under Section 263, leading to the appeal being allowed, canceling the revisional order and restoring the AO's decision.
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