2026 (7) TMI 197

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....Tax Act, 1961 (hereinafter referred to as the 'the Act') by the Income Tax Officer, Ward-19(1), Delhi, (hereinafter referred to as the 'AO') pertaining to Assessment Year (A.Y.) 2017-18. 2. Grounds of appeal filed by the Assessee are reproduced as under: "1. That in the absence of a valid notice issued under Section 143(2) of the Income Tax Act and the consequent framing of the assessment order by the Income Tax Officer Ward 19(1), in violation of CBDT Instruction No. [F.No.225/157/2017/ITA-II] dated 23.06.2017, the invalid assumption of jurisdiction would render the impugned assessment bad in law. 2. That the addition of Rs. 93,92,000/-u/s 56(2)(viib) of the Act read with Rule 11U & 11UA of the Income Tax Rules made by....

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....dition u/s 56(2)(viib) on account of excess consideration received on issue of shares (Rs. 93,92,000/-). 4. Brief facts in this regard are that the assessee issued its 2,00,000/- shares on 31.03.2017 at a face value of Rs. 10 and premium of Rs. 60 per share. Assessee filed a valuation report as per DCF method showing the Fair Market Value (FMV) of the shares at Rs. 155.31 per share. The AO rejected the same and proceeded to make valuation as per Rule 11UA at Rs. 23.04 per share. The difference of Rs. 70 and 23.04 i.e. Rs. 46.96/- was treated as excess consideration per share and addition of Rs. 46.96 X 2,00,000/- = 93,92,000/- was accordingly made u/s 56(2)(viib) of the Act. 4.1 Before us, Ld. AR has submitted that the AO while comput....