2023 (1) TMI 607

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....0,000/- u/s. 56(2)(viib) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act']. 3. The peculiar facts of the case are that the appellant company was incorporated in the year 1995 and since then, till date, is not doing any business but is only engaged in providing accommodation entries, as admitted by the ld. counsel for the assessee before the Bench. 4. The more peculiar fact is that during the year, in spite of zero business activities, the assessee company issued 8 lakhs shares, each of face value of Rs. 10/- to two companies, namely, M/s. Elecon Securities Pvt. Ltd. and M/s. Ordinary Financial Services Pvt. Ltd. 5. This transaction becomes more scarier when we find that this issue of 8 lakhs shares was in conside....

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....ce on the decision of the co-ordinate bench at Chandigarh in the case of Electra Paper and Board Pvt. Ltd. ITA No. 222/Chd/20221(sic) and also on the decision of the co-ordinate bench at Chennai in the case of Vaani Estates Pvt. Ltd. in ITA No. 1352/Chny/2018 supported by referring to the speech of the Hon'ble Finance Minister while making the amendment. 11. The ld. counsel for the assessee also referred to the Valuation Certificate, which is at page 51 of the Paper Book. 12. Per contra, the ld. DR strongly supported the findings of the Assessing Officer and vehemently stated that the Assessing Officer has rightly valued the shares as per the relevant rules of the IT Rules, rightly confirmed by the ld. CIT(A) and there is no error or ....

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....ce sheet drawn up as on the date immediately preceding the valuation date which has been approved and adopted in the Annual General Meeting of the share holders of the company, which would be 31.03.2013 in the present case. 16. For a company, it is impossible to get it accounts audited on 31st March and present the same for approval in the Annual General Meeting on March 31st. 17. The Chandigarh Bench of ITAT had the occasion to decide whether it would be justifiable to accept the unaudited balance sheet as on the valuation date when the same has been audited at a later date with no material variance in the financials. 18. But in the case in hand, when the Bench asked the ld. counsel for the assessee about the unaudited balance sheet as ....