TaxTMI 
TaxTMI 
2019 (8) TMI 21
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...., 2019 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 2742/Del/2017 in the Assessment Year (AY) 2010-11. 2. The issue sought to be urged by the Revenue is whether the ITAT is justified in setting aside the order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act, 1961 (the Act) requiring the Assessing Officer (AO) to revisit the assess....
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....nsel for the Revenue, the Court has examined carefully the impugned orders of the PCIT as well as the ITAT. An outstanding factor, which according to the ITAT, clinched the issue was discussed by it in para 8 of the impugned order which reads as under: "8. One more important fact which clinches the entire issue and separates the case of the assessee from all other cases of share capital and shar....
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.... of allotment of its shares at face value of shares. This was in a sense an exchange. The ITAT interpreted Section 68 of the Act in the light of the above facts and observed in para 10 of the impugned order as under: "10. Ergo, when assessee in lieu of allotment of shares including face value of shares as well as premium amount, has received investments in the form of equity shares of various co....
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....e genuineness and creditworthiness of the source of funds. The identities of the parties were not in dispute. The genuineness of the transaction was held to have been fully proven by the fact the companies had given shares to the Assessee in lieu of the shares allotted to them. And lastly, there was no requirement to examine the creditworthiness of any sum advanced or invested because in fact, the....