People Care Hospitals Pvt. Ltd Vs ITO (ITAT Delhi)
ITAT Delhi held that no addition in respect of share premium under section 68 of the Income Tax Act since necessary evidence along with valuation certificate as per rule 11UA(2)(b) of the Income Tax Rules already furnished. Accordingly, appeal allowed.
Facts- The appellant is a company carrying on the business to acquire, establish and maintain one or more hospital, treatment of persons suffering from illness or mental defect or of persons requiring medical attention or rehabilitation and to provide medical relief to the public in all branches of medical sciences by all available means.
The appellant has mainly contested that CIT(A) was incorrect in confirming the addition of Rs. 48,00,000/- confirmed u/s 68 of the Act on account of share capital and CIT(A) was also incorrect in enhancing of income by Rs.70,87,500/-u/s 56(2)(viib) of the Act on protective basis for share premium charged by rejecting the valuation report furnished under Rule 11UA(2)(b) i.e. Discounted Cash Flow Method.
Conclusion- Held that when the burden on assessee is to establish identity, creditworthiness and genuineness of the transaction these documents are of vital significance and the ld tax authorities should bring on record some material to the contrary. A bald rebuttal without any material evidence or circumstances is not sufficient. The assessee company has furnished all the relevant documents before the lower authorities along with the valuation certificate as per the Rule 11UA(2)(b) of the Income Tax Rules, 1962.
