TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 1022
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....) on 25.5.2015 and thereafter the case of the assessee was selected for scrutiny through CASS. Statutory notice u/s. 143(2) of the Act was issued on 28.8.2015 and duly served upon the assessee. In response to the same, the AR of the assessee attended the proceedings and filed the detailed as called for. The assessee company was incorporated on 29.1.2010. The assessee company is stated to be engaged in the business of setting up advance machines for diagnosis and treatment of cancer in association with hospitals all over India. The details filed by the AR of the assessee were examined on test check basis with reference to the books of accounts produced. Thereafter, the AO observed that the difference between the share premium received in exc....
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.... revenue that stated money is not clean money). It was further submitted that Ld. CIT(A) erred in confirming/sustaining the addition made of Rs. 9,19,632/- u/s 56(2)(viib) of the Act in para 8.1 to 8.4 of his order by not appreciating that genuineness of share premium gets established from impeccable fact that as far justification of share premium of here is concerned, that on 01/12/2014 (during AY 2015-2016) share of Clearview Healthcare Pvt Ltd were sold to Medipass SRL Italy @ 380.53 per share (which in turn valued shares of Clearmedi Healthcare Private Limited @ 615 per share assessee herein) and for which necessary copy of resolution dated 20/12/2013 duly attested by Notary public of Italy were purveyed to AO durng assessment itself an....
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....(A) erred in not deciding the appeal of assessee on its merits when addition of Rs. 919,632 /- u/s 56(2)(viib) of the Act was palpably incorrect because of following apparent errors and discrepancies i.e. Non residents were issued the shares at same time at same premium; AO has lightly doubted and rejected the expert opinion; Subsequently same share have been sold to Italian Co. at more than double rate on which capital gain was offered. He further stated that the issue in dispute is squarely covered by the decision of the ITAT, Chenai A Bench decided in ITA Nos.663, 664 & 665/Chny/2019 in case of M/s Lalithaa Jewellery Mart Pvt. Ltd decided on 14.06.2019 and placed the copy thereof and requested to delete the addition by following the same....
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....use (ii) thereof where judicious satisfaction of AO is talked about). This plea of assessee has considerable cogency. The second plea is that when ultimately shares are bought by foreign buyer on basis of detailed due diligence which is reflected from share purchase resolution and share purchase agreement already placed on records and money paid for share purchase by foreign buyer is beyond shadow of doubt it cannot be said that subsequent money which is paid by foreign buyer to share holders sellers in India who have subscribed share at premium in subject period is not a clean money which defense of assessee also has considerable cogency. Further, plea of assessee that once assessee has given approved valuer (CA) report justifying share pr....
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....n section 56(2). The new clause will apply where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares. In such a case if the consideration received for issue of shares exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be chargeable to incometax under the head "Income from other sources. However, this provision shall not apply where the consideration for issue of shares is received by a venture capital undertaking from a venture capital company or a venture capital fund. Further, it is also proposed to provide the comp....
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....s goodwill, knowhow, patents, copyrights, trademarks, licences, franchises, etc. The Assessing Officer has not taken into consideration the second limb in explanation to Section 56(2)(viib) of the Act. The second limb provides that when valuation was made by the company, if the Assessing Officer is not satisfied about the valuation, he has to call for material from the assessee how the valuation was made by the assessee-company. Satisfaction of the Assessing Officer as referred in explanation to Section 56(2)(viib) of the Act would be judicial satisfaction of the Assessing Officer. Judicial satisfaction means the Assessing Officer has to take into consideration the well established method of valuation of shares including the assets as expla....