2024 (6) TMI 653

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....018-19. 2. The assessee's case was selected for scrutiny assessment on the issue of share premium and the assessment order was passed on the returned income. However, Principal Commissioner of Income Tax, Noida, was not satisfied and on the basis of examination of the assessment record concluded that as the assessee furnished valuation report of an Auditor, which was accepted by the Assessing Officer without examining it, the order is erroneous insofar as it is prejudicial to the interests of Revenue. Revisional Authority was of the view that the valuation report furnished by the Auditor revealed that it was based on the valuation of quoted shares provided under Rule 11UA(1)(c), whereas this is case of valuation of unquoted shares under Ru....

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....erroneous and pre-judicial to the interest of revenue. 4. On the facts and circumstances of the case and in law, the Ld. PCIT erred in law by assuming jurisdiction u/s 263 of the Act when the Ld. AO after considering the submissions made by the assessee has already taken a possible view which is not in agreement with the opinion of Ld. PCIT and the Ld. PCIT wants the matter to be investigated in a particular manner as held by the Hon'ble Income Tax Appellant Tribunal - Delhi in the Sunray Cotspin (P) Ltd, Gurgaon vs Pr.CIT. 5. Without prejudice to the above, Ld. PCIT erred in the facts and in the circumstances of the case by not appreciating the fact that discrepancies pointed out by Ld PCIT were nothing more than the inadvertent cleric....

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....vertent mistake along with undertaking to that effect that the fair value and the share value being same, however, the impugned order was still passed, holding that there was no inquiry and the assessment is cryptic. 5. Learned DR, on the contrary, defended the order of PCIT and submitted that there was no justification in the valuation report and the assessment order is ambiguous and cryptic. 6. After taking into consideration the factual circumstances cited and submissions made, it comes up that during the assessment proceedings u/s 143(3) of the Act, a specific query was raised by way of notice u/s 142(1) of the Act whereby the assessee was asked to respond on following aspects: "1) With respect to the fresh issue of share during the....

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.... details / documents and information for your kind reference and record: 1. Copy of complete set of financial statements (including Balance Sheet, Profit & Loss account, schedules, notes etc.) including auditor's report thereon, for the Assessment Year 2018-19 is given in Annexure-1 enclosed herewith for your kind reference and record. 2. Copy of Income Tax Return for the Assessment year 2018-19 along with acknowledgement is given in Annexure-2 enclosed herewith for your kind reference and record. 3. Details of shareholder to whom shares were allotted by the assessee during the Assessment Year 2018-19 is given in Annexure 3 enclosed herewith for your kind reference and record. 4. Copy of acknowledgement of income tax return file....