TaxTMI 
TaxTMI 
2025 (6) TMI 159
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....- "1. Whether on facts and in circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 7,98,97,75,682/- made by the AO to the income of the assessee on account of provisions of section 56(2)(vii)(c) of the IT Act ignoring the fact that the assessee has acquired shares for a consideration which is less than aggregate fair market value of the shares? 2. Whether on facts and in circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 7,98,97,75,682/- made by the AO to the income of the assessee on account of provisions of section 56(2)(vii)(c) of the IT Act ignoring the fact that shares of Spice jet purchased by assessee are quoted a....
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....s. 1/- (Rupees 1 only) in pursuance of 'Share Sale and Purchased Agreement' dated 21.01.2015. M/s. Spicejet Ltd. is a public listed company whose equity shares are listed on Bombay Stock Exchange (BSE). The Assessing Officer (AO) in assessment proceedings did not accept the transaction value of sale of shares. The AO observed that since the equity share of M/s. Spicejet Ltd. are traded on stock exchange and the lowest price traded of M/s. Spicejet Ltd. shares on BSE on 17.03.2015 was Rs. 22.88 per share, therefore, Fair Market Value on date of transfer as per section 56(2)(viii)(c) r.w.r. 11UA is Rs. 22.88 per share. Thus, the AO made addition of Rs. 798,97,95,628/-. Aggrieved by the assessment order dated 31.12.2018 passed u/s. 147 r.w.s 1....
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....ehemently defended the assessment order and prayed for reversing findings of the CIT(A). The Ld. DR submits that the CIT(A) has erred in not taking into consideration the fact that a scheme of reconstruction and rival for takeover of ownership, management and control of the company was approved. According to the approved scheme 189091378 convertible warrants having a nominal value of Rs. 10 each were to be issued to the outgoing promoters i.e. Sri Kalanithi Maran for a consideration aggregating to Rs. 3082.19 millions with an option to apply for equivalent number of equity shares of the face value of shares of Rs. 10/- each at a premium of Rs. 6.30 per share. The said scheme was approved on 22.01.2018 i.e. within the close proximity of time....
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....s. 798,97,95,628/-. While examining the impugned order, we find that nowhere it is emanating from the assessment order or the order of CIT(A), the period of lock-in of shares purchased by the assessee. The shares were sold by Sri Kalanithi Maran to the assessee in pursuance of 'Shares Sales and Purchase Agreement' dated 21.01.2015. The convents of the said agreement are nowhere discussed in the orders of the authorities below. Further, the class of shares purchased by the assessee i.e. the share purchased by assessee are also listed on stock exchange is also not emanating from the impugned order. Mere fact that the shares are in lock-in is not sufficient to come to the conclusion that the market value shall be determined in a manner similar....