TaxTMI 
TaxTMI 
2019 (7) TMI 854
X X X X Extracts X X X X
X X X X Extracts X X X X
....lly passed an order u/s 143(3) of the Act, for the Assessment Year 2013-14 on 31/08/2016. In that order at page 6, he held that Section 56(2)(viib) of the Act, is applicable and that it is a prospective amendment and cannot be applied for the Assessment Year 2013-14. He also held that it is not a case where unaccounted money has been introduced in the hands of the assessee but rather it was the directors who brought in their money for boosting the financials of the company as share application money with share premium. He allowed Ground No. 2 raised by the assessee which relates to the addition of Rs. 26,10,981/- being share premium received from directors. In the order passed u/s 154 of the Act, the ld. CIT(A)-Durgapur held that there is a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....urisdictional High Court in the case of Gopinath Ghorai vs. PCIT in G.A. No. 3174 of 2016 & ITAT No. 393 of 2016, judgment dt. 21st November, 2016 and hence the issue is a debatable issue and is not within the purview of section 154 of the Act. He consequently relied upon certain circulars issued by the Central Board of Direct Taxes on 31st December, 2018 and which was apparently withdrawn subsequently after a short period for the proposition that the intention of introducing clause (viia) to Section 56(2) of the Act was never to apply these provisions to fresh issue of share capital and it was only in case of transfer of shares for inadequate consideration that the provision should apply. He relied on the decision of the Chennai 'A' Bench ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ad to be rectified by the ld. CIT(A). He prayed that the impugned order of the ld. CIT(A) be upheld. 6. We have heard rival contentions. On careful consideration of the facts and circumstances of the case, perusal of the papers on record, orders of the authorities below as well as case law cited, we hold as follows:- 7. A perusal of the original assessment order passed ex-parte by the ld. CIT(A) demonstrates that relief has been granted on two grounds. We extract the relevant paragraph which is at page 6 of the original appellate order dt. 31/08/2016:- I have perused the order of the A.O. and submission of the appellant. In this case it is seen that directors have given money in order to boost the financial status of the company under t....