Case Law Details
SIS Prosegur Holdings Pvt. Ltd Vs PCIT (ITAT Kolkata)
ITAT Kolkata held that AO failed to make required enquiries to go into the question of valuation of shares given by the accountant for the purpose of assessment of income as per provisions of section 56(2)(viib). Accordingly, revisionary power under section 263 rightly invoked.
Facts- The ld. PCIT while examining assessment records found that the assessee during the year had issued 900000 equity shares of Rs. 10/- at a premium of Rs.90/- per share totalling Rs. 100/- per share. Therefore, the ld. PCIT noting that the provisions of section 56(2)(viib) of the Act was applicable and that the Assessing Officer has not examined the above aspect relating to the fair market value of the shares and that there were discrepancies in the valuation record furnished by the accountant, the ld. PCIT invoking his revision jurisdiction u/s 263 of the Act show-caused the assessee in this respect.
Being aggrieved, by the order of the ld. PCIT, the assessee has preferred the present appeal.
Conclusion- In this case, the ld. PCIT has pointed out various discrepancies as noted above, which the assessee has failed to rebut and however, the Assessing Officer did not make required enquiries to go into the question of the valuation given by the accountant for the purpose of assessment of the income of the assessee as per the provisions of section 56(2)(viib) of the Act.
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