TaxTMI 
TaxTMI 
2026 (1) TMI 1604
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.... order was emanated from the order of the Ld. Assistant Commissioner of Income-tax, Circle-10(1)(2), Mumbai (hereinafter, 'Ld.AO'), passed under section 143(3) of the Act, date of order 19/12/2018. 2. The brief facts of the case are that the assessee filed its return of income declaring a loss of Rs. 52,81,310/-. The return was processed under section 143(1) of the Act. Subsequently, the case was selected for scrutiny through CASS under the category of "Limited Scrutiny." The issue identified for examination was the receipt of a large share premium during the year, specifically to verify the applicability of section 56(2)(viib) of the Act, as reflected in Part A-BS of the return of income. In terms of CBDT Instruction No. 20/2015, the sc....
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.... CIT(A), in the first appellate proceedings, correlated the provisions of section 56(2)(viib) with section 68 of the Act and upheld the addition. Being aggrieved, the assessee has filed the present appeal before us. 3. The Ld. AR filed a paper book containing pages 1 to 112, which has been placed on record. The Ld. AR submitted that the additions were confirmed mainly in respect of share subscribers who were NRIs. It was contended that the Ld. CIT(A) wrongly presumed the absence of supporting evidence and confirmed the addition on that basis. According to the Ld. AR, the Ld. CIT(A) erroneously observed that the assessee failed to furnish corroborative evidence regarding the details of the share subscribers. He further pointed out that th....
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....cation 85 to 86 d Copy of Ledger Confirmation 87 to 88 4 Mohit Khatwani a Copy of PAN Card of Shareholder 89 b Copy of ITR Acknowledgement of the shareholder company 90 c Copy of Bank Statement Highlight the transaction 91 d Copy of fund transfer application 92 to 93 e Copy of Ledger Confirmation 94 to 95 5 Copy of Written Submission submitted before the Ld. A.O. 96 to 100 6 Copy of Written Submission submitted before the Hon'ble CIT(A) 101 to 112 5. The legal issue was duly argued by the Ld. AR. It was submitted that the assessee's case was selected for scrutiny exclusively for verification of the share premium received during the impugned assessm....
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....y and then only proceeded to have made his enquiries and the corresponding addition. In the present case, as the same was not done we proceed to quash the addition made by the Ld. AO amounting to Rs. 1,69,69,770/- u/s 2(22)(e) and Rs. 4,65,85,000/- under section 69A of the Act. Ground of appeal no.1 and 2 raised by the Revenue are dismissed." 6. The Ld. AR further respectfully relied on the order of the co-ordinate bench of ITAT, Delhi Bench "A" in the case of ACIT vs B.K. Sales Corporation (2025) 176 taxmann.com 17 (Delhi - Trib.). The relevant paragraph 8 is extracted below:- "8. We have noted that it is an evident fact on record that the Id AO has travelled beyond the limited scrutiny parameters for which the case was selecte....
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....ons and perused the documents available on record. During the course of hearing, arguments were advanced on two fronts, namely, on the legal issue as well as on merits. The scrutiny proceedings were initiated solely with respect to the acceptance of share premium and to examine the applicability of section 56(2)(viib) of the Act. The assessee had duly furnished all relevant documents before the Ld. AO as well as before the Ld. CIT(A), which are placed on record in the paper book. Since the investors were NRIs, the assessee submitted all relevant documents, including bank statements and ledger confirmations, before the authorities. The assessee has thus complied with the requirements of section 68 of the Act by establishing the identity of t....