2025 (6) TMI 893

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....inst the assessment order u/s 143(3) of the Act, dated 17.04.2021. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: "1) That in the facts and circumstances of the case the Learned Assessing Officer is not justified to add the share premium amount of Rs. 1,05,19,180/- received on issue of shares by the assessee company u/s 56(2)(viib) of the Income Tax Act, 1961 without providing reasonable opportunity to submit the valuation report in support of the valuation of shares. 2) That in the facts and circumstances of the case the Leamed NFAC, Delhi is not justified to simply dismiss the appeal filed by the assessee without accepting the valuation report submitted during the appellate proceedings simpl....

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....unds before or at the time of hearing." 3. Brief facts of the case are that the assessee is a company and had filed its return of income on 7.1.2019 showing total income of Rs. 5,39,05,660/- which was revised on 19.1.2019 declaring total income of Rs. 5,48,52,660/-. The case was selected for limited scrutiny on the issue of default in TDS and disallowance for such default and on the issue of share premium received. On verification of details submitted by the assessee, the Ld. AO noticed that the assessee company had issued shares to its shareholders at a premium of Rs. 454/- per share. The assessee was asked to produce various details. Since the assessee did not furnish the required details despite having been given sufficient time and a n....

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....hority has been filed in terms of Rule 46A nor any justification or explanation has also been given as to why these evidences were not produced before the Assessing Officer, therefore, considering the non-responsive nature of the assessee, the valuation report was not considered for adjudication of the appeal. Further, reliance was placed upon the decisions of the Hon'ble Supreme Court in the case of Sreelekha Banerjee vs CIT (1963) 49 ITR 112 (SC), Kale Khan Mohammad Hanif vs CIT (1963) 50 ITR 1(SC), Roshan Di Hatti vs CIT (1977) 107 ITR 838 (SC), Sumati Dayal vs CIT (1995) 50 Taxman 89 (SC), CIT vs. P. Mohanakala (2007) 161 Taxman 169 (SC) and other cases and the decision of Hon'ble Guwahati High Court in the case of Nemi Chand Kothari vs....

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.... be filed due to a reasonable cause, which is against the principles of natural justice. The assessee has also referred to the CBDT circular No.14(XL-35) of 1955 dated 11.4.1955 mentioning the intention of the legislature to provide reasonable justice. The TDS deduction of Rs. 1,79,55,137/- has also not been allowed as a credit by the Ld. Assessing Officer while calculating the tax payable in the order, which is illegal and against the principle of natural justice. The Ld. Sr. THE LD. DR, however, argued that the order of the Ld. CIT(A) may be confirmed. 7. We have considered the submissions made. The Bench was of the view that the Ld. CIT(A) had brushed aside the additional evidence in the form of valuation report submitted by the assesse....