TaxTMI 
TaxTMI 
2025 (3) TMI 1678
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....ial to the interests of revenue and passing order u/s 263, directing to pass fresh assessment order in the case. 2. PAYER 2.1 The order u/s 263 passed by the PCIT may be kindly set aside. 2.2 Personal hearing may be granted. 2.3 Any other relief that your honours may deem fit may be granted. 3. The assessee craves leave to add, amend, modify alter or delete any of the grounds at the time of hearing" 2. Brief facts of the case are that case of assessee is a private limited company filed its return of income for assessment year 2018-19 on 31.10.2018 declaring total income at Rs. 39,45,500/-. Case was selected for limited scrutiny on the issue of "large share premium received during the year". The Assessing Officer after issuing notice under section 143(2) and notice under section 142(1) along with questionnaires regarding details of persons who have subscribed share, number of share, value of share which was issued and face value of the share and premium thereof as well as documents filed before Registrar of Companies ('ROC' in short) with regard to such issue, working of share valuation for the purpose of share premium and valuation re....
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....tion 142(1) dated 11.12.2019 and asked the assessee to produce documentary evidence in support of claim on the issue on which case was selected for scrutiny i.e., large share premium received during the year. The Assessing Officer also asked to furnish the details of share subscriber, number of share issued valuation of share, premium thereof and their ledger account with other details along with documents filed in ROC in this regard. In response to such show cause notice, assessee submitted list of allottees/share subscriber, their complete address, number of share, face value and premium along with Form-PAS-3 as filed before ROC. The assessee also furnished valuation report under Rule-11UA of the Income Tax Rules, 1962 for determining the value of share and premium thereof. The assessee further stated that they have issued shares on the basis of Fair Market Value ('FMV' for short) obtained from Chartered Accountant as prescribed under Rule 11UA(2)(c) of the Income-tax Rule, 1962. All such documents were filed before Assessing Officer. The Assessing Officer passed assessment order under section 143(3) r.w.s 143(3A) and 143(3B) of the Act on 08.04.2021 without making any addition o....
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....ars. The assessee has only converted loan into equity shares and no addition can be made during the year under consideration. The assessee also relied on various case law and finally submitted that twin condition for invoking jurisdiction under section 263 is not available in the present case. The Assessing Officer passed assessment order after due application of his mind and it is not a fit case for exercising jurisdictional power under section 263 on the issue raised in the show cause under section 263 and notice issued may be dropped. 5. The reply of assessee was not accepted by Ld. PCIT. The Ld. PCIT in para-5.1 of impugned order recorded that after careful consideration and submission of assessee issued fresh show cause notice passed on 05.03.2024. Contents of such show cause is recorded on pages 20 to 22 of impugned order. In the second show cause notice dated 05.03.2024, the ld PCIT mentioned that case was selected for scrutiny on the issue of "large share premium received during the year (verify the applicability of 56(2)(viib) or any other relevant section" or any other relevant section. Since consideration of share issued by the assessee (wrongly mentioned received) by....
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....erein he has noted about consideration of material on record. Merely because there was no discussion regarding documents filed by assessee on the receipt of premium, the order of Assessing Officer would not become erroneous. The Assessing Officer normally discussed only those issues on which he is in disagreement with the assessee. There cannot be any presumption on that account that no enquiry or requisite inquiry were not carried out by Assessing Officer. To support their contention, assessee relied upon decision of Hon'ble jurisdictional High Court in the case of CIT vs. Nirav Modi (390 ITR 292) (ii) Idea Cellular Ltd. (301 ITR 407) and CIT vs. Fine Jewellery India Ltd. (55 taxmann.com 514). The assessee also relied upon the decision of Hon'ble jurisdictional High Court in the case of Nirma Chemical Works (309 ITR 67) wherein it was held that if the assessment order was incorporated the reasons for upholding the claim made by an assessee, the result would be an epitome and not an assessment order. Merely, ld. PCIT does not agree with the possible view taken by the Assessing Officer, the assessment cannot be subject-matter of revision. To support such view, assessee relied upon t....
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....ubmits that case was selected on specific issue of 'share premium'. During assessment, Assessing Officer sought requisites details about the issuance of share, share application and share premium vide show cause notice 11.12.2019. The assessee furnished complete details of persons to whom shares were allotted, number of shares and premium were also furnished. All the share subscribers were either family members of the director of assessee-company or their relatives. The assessee also furnished Form-PAS-3 furnished before Registrar of Company (ROC) along with special resolution passed in the extraordinary meeting held by assessee-company on 28.05.2017. The assessee also furnished the other requisites details. The assessee specifically stated that security premium amount was not received during the year under consideration. The assessee received unsecured loan of Rs. 98.00 lakh in assessment year 2015-16 and unsecured loan of Rs. 24.00 lakh in assessment year 2017-18 which were converted into share application and share premium. Only Rs. 1.00 lakh was received during the current financial year. The assessee explained that there was no fresh credit in the books of assessee. The Assess....
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....o deliberated on the various case laws relied by the ld AR of the assessee as well as by ld. PCIT. On perusal of assessment order, we find that there is no detailed discussion in the assessment order, however, on perusal of record, we find that before accepting the contention of assessee, the Assessing Officer issued show cause notice to the assessee for seeking various details on share application, share capital account and share premium about details creditworthiness of investors capital account and balance-sheet. The assessee is response to the show cause notice, filed it detailed reply and furnished all details including the valuation report about the value of shares. All the details are still available in ITBA portal. Such fact is also accepted by Ld. PCIT in para-3 of impugned order. We find that in response to show cause notice issued by Ld. PCIT under section 263, the assessee filed detailed written reply, extracted of which are recorded by Ld.PCIT in impugned order, which is running into 17 pages. The relevant part of rely of assessee have already been recorded by us and same is not being repeated for the sake of repetitions. We find that Ld. PCIT has not given any finding....