2025 (2) TMI 1953

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....addition of Rs. 20.07 crores made by the AO u/s. 56(2)(viia) of the Income Tax Act, 1961 ('the Act'). 2. We heard the parties and perused the record. The facts relating the issue under consideration are stated in brief. The assessee-company purchased 18,48,800 number of shares of M/s. Billimoria & Co. Ltd., for an aggregate consideration of Rs. 15.23 crores. The AO noticed that the shares were purchased at a price of Rs. 82.39 per share. When asked for justification of purchase price of shares, the assessee submitted that it has purchased the shares at the negotiated price of Rs. 82.39 per share. It is pertinent to note that the provisions of sec.56(2)(via) provides for taxing the difference between the fair market value of shares of clo....

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....xisting shareholders and hence, there was no fresh infusion of funds in the company and in that case, the provisions of section 56(2)(viia) of the Act will not apply. The revenue is aggrieved. 4. Before the Tribunal, the assessee has furnished another valuation report dated 8th April, 2014. The Ld D.R submitted that there is no reference to the above said valuation report in the assessment order and hence, it is not clear as to whether the assessee has really furnished this valuation report before the AO. The Ld.DR further submitted that the three valuation reports furnished before the AO by the assessee did not follow any of the methods prescribed under Rule 11UA of the Rules. 5. The Ld.AR submitted that the assessee had furnished th....