TaxTMI 
TaxTMI 
2022 (1) TMI 1448
X X X X Extracts X X X X
X X X X Extracts X X X X
....acts and circumstances of the case to the extent prejudicial to the interest of the appellant and at any rate is opposed to the principles of equity, natural justice and fair play. 2. That the Ld. CIT(A) failed to appreciate that the order of the Assessing Officer is without jurisdiction. 3. a) That on the facts of the case and circumstances and in law, the Ld. CIT(A) has erred in confirming the addition of INR 1,54,54,792 made by the Assessing Officer ('AO') considering share premium received as income from other sources under section 56(2)(viib) of the Income-tax Act, 1961 ('Act'); b) That on the facts of the case and circumstances and in law, the Ld. CIT(A) has failed to appreciate that the prov....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y of the funds received in the form of share premium. During the course of assessment proceedings, it was noticed that the assessee had authorized share capital of Rs.5 lakh and subscribed and paid up capital of Rs. 3,84,620. The assessee during the relevant assessment year received a sum of Rs. 1,54,54,792 as share premium. The assessee submitted that the company had in the earlier assessment year issued shares to ACT Digital Home Enterprises Private Limited (ACT Digital) with a face value of Rs. 10 per share and a share premium of Rs. 912. It was stated that for 17042 shares, an amount of Rs. 4 per share was outstanding towards face value and Rs. 908 per share was outstanding towards share premium as on 01.04.2015. Accordingly, the assess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hare was valued at Rs. 922/- needs all kina of examination including identity, credit worthiness and genuineness of the share application as well as the method of valuation adopted by the assessee company. There is no valuation report submitted by the assessee. The assessee company has given all sorts of artificial figures on a plain paper to arrive at the value per share. Prima facie, it can be said that there was no valuation done by the assessee company for valuation of shares and the "determination of value of share" submitted during the course of assessment proceedings to arrive at the desired value per share appears to be an afterthought of the assessee. ............................ Under these circumstances, by invo....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on the Calcutta Tribunal order in the case of Diach Chemicals & Pigments Pvt. Ltd. dated 19.06.2019. Thereafter, the CIT(A) after explaining the need for introduction of section 56(2)(viib) of the I.T.Act and the amendment to section 68 of the I.T.Act by Finance Act, 2012, held that such amendment is to control bogus / unjustified subscription of share premium and to prevent circulation of black money. The CIT(A), after examining the valuation given by the assessee, held that it is not as per the prescribed method nor does it have any scientific basis. Accordingly, the CIT(A) confirmed the view of the Assessing Officer and held that the share premium is to be assessed u/s 56(2)(viib) of the I.T.Act. 5. Aggrieved, the assessee has raised....