TaxTMI 
TaxTMI 
2026 (5) TMI 1711
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....me-tax Act, 1961 (hereinafter referred to as 'the Act') dated 29.12.2017 by the Assessing Officer, ITO, Ward-9(2), New Delhi (hereinafter referred to as 'ld. AO'). 2. The only issue to be decided in this appeal is as to whether the Learned CIT(A) was justified in deleting the addition of Rs. 5,32,33,200 made by the Learned AO by applying the provisions of Section 56(2)(viib) of the Act on account of receipt of share premium by the assessee company in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the materials available on record. The return of income for the assessment year 2015- 16 was filed by the assessee company declaring Nil income on 29-09- 2015. During the year under conside....
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....the documents submitted before him by the assessee company reflecting projections for the explicit forecast period and to furnish a computation of terminal value of the company based on perpetual growth method beyond the explicit forecast period. In reply to the notice under Section 133(6) of the Act, CA Sunil Kumar Chaurasia replied vide letter dated 6-12-2017. The said letter is reproduced in page 2 of the assessment order. In the said letter, the Chartered Accountant cum Valuer duly mentioned the basis of valuation together with the details submitted by the assessee. Summons under Section 131 of the Act was issued to CA Sunil Kumar Chaurasia and his statement was recorded by the Learned AO on 14-12-2017 and 26-12-2017 wherein he stated t....
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.... depreciation and assets details for 28 years in just two sheets with the detail that the commercial operations commencement is 28th February 2018. Ultimately, CA Sunil Kumar Chaurasia was cross-examined on 28- 12-2017 by the authorized representatives of the assessee company. In reply to the show-cause notice, the assessee merely submitted that the earlier replies that valuation report from an accountant has been obtained to justify the price of the shares. The assessee further submitted that the shares were issued only to the holding company Hindustan Clean Energy Ltd., which has vast experience in solar power plants and that the proposed solar power plant by the assessee company has got delayed. It was further submitted that the shares i....
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....o 100 equity shares of Rs 10 each after 18 years. Hence it is very clear that no premium at all was charged for issuance of CCPS by the assessee. Hence the provisions of section 56(2)(viib) of the Act per se cannot be applied for shares issued to the holding company M/s Hindustan Clean Energy Limited. 7. In respect of redeemable preference shares (RPS), we find that the same were issued to an unrelated party M/s Ujjwala Power Private Limited and as per the terms and conditions, the said preference shareholder would be able to redeem the shares after a lock in period of 5 years at 12% return per annum. In other words, Ujjwala Power Private Limited would have to stay as a preference shareholder in the assessee company and it would be entit....