2025 (6) TMI 1618

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.... is noted that there is a delay of more than '568' days in filing of the appeal. The assessee has filed an Affidavit i.e. by Shri Sampath Kumar Jagannathan, Director of the assessee company along with condonation of delay. Perusal of the same reveal that the assessee company was incorporated on 27.01.2015 and has been struck off from the list maintained by ROC/Ministry of Corporate Affairs; and therefore, the officials/accountants who were handling the legal affairs of the assessee-company left it [the company]; and because of which, emails/ notices/impugned order went unnoticed, and the Ld.AR also pointed out that they later only found that certain notices/orders went to the 'SPAM' account which resulted in the assessee not noticing the ex....

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....see was in the dark about the appellate proceedings going on against the assessee. Therefore, assessee can't be faulted for the delay and therefore, the delay caused in filing of the appeal is condoned and we proceed with the appeal on merits. 3. Brief facts are that the assessee company is a startup company which was incorporated on 27.01.2015 and is noted to be engaged providing technology services. The assessee is noted to have received funds from Angel Investors and in lieu of it the assessee issued 1248 equity shares at a price of Rs. 6,000/- per share which according to the assessee was supported by valuation carried out under the Discounted Cash Flow (DCF) method in accordance with Rule 11UA of the Income Tax Rules, 1962 and certi....

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....ollowing grounds which are reproduced as under: I. No consideration received for equity shares - only convertible debentures issued. II. Assessment made on a struck off company is void ab initio. III. Angel Tax provisions withdrawn - FM's commitment to settle legacy cases. IV. DCF valuation report prepared by Chartered Accountant - valid and binding, not referred to DVO. V. DCF is based on bona fide estimates -can't be rejected by comparing with actuals. VI. Funds, received through banking channels - no dividend paid - no claim u/s.10(38) - entire amount utilized for business operations. VII. Credible investors - backed by the Chennai Angels Network. VIII. Failure to co....