https://www.taxtmi.com/caselaws?id=759757 ITAT Chennai held that PCIT's revision u/s 263 was unjustified where assessee issued compulsory convertible preference shares at Rs. 416.69 per share against fair market value of Rs. 414 per Rule 11UA. The minimal 0.65% difference was within acceptable limits, and AO had conducted proper inquiry by issuing notice u/s 142(1) seeking FMV details. Following ITAT Delhi precedent in Sakshi Fincap case, the tribunal ruled Rule 11UA amendment was curative, deeming issue price as FMV. Since the order wasn't prejudicial to revenue interest, the twin conditions for Section 263 weren't satisfied. Assessee's appeal was allowed. en-us Mon, 30 Sep 2024 00:00:00 +0530 Mon, 07 Oct 2024 10:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759757 ITAT Chennai held that PCIT's revision u/s 263 was unjustified where assessee issued compulsory convertible preference shares at Rs. 416.69 per share against fair market value of Rs. 414 per Rule 11UA. The minimal 0.65% difference was within acceptable limits, and AO had conducted proper inquiry by issuing notice u/s 142(1) seeking FMV details. Following ITAT Delhi precedent in Sakshi Fincap case, the tribunal ruled Rule 11UA amendment was curative, deeming issue price as FMV. Since the order wasn't prejudicial to revenue interest, the twin conditions for Section 263 weren't satisfied. Assessee's appeal was allowed. Case-Laws Income Tax Mon, 30 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759757