2023 (9) TMI 1119 - HC - Income Tax

Valuation of shares - price at which the shares of Scorpio Beverages Pvt. Ltd. were sold by the petitioner/assessee and his wife - petitioner has, inter alia, alluded to the fact that insofar as his wife is concerned, the valuation offered by her with respect to the subject shares, which was pegged at Rs. 70.59 per share, has been accepted by the Tribunal - petitioner says that this writ petition can be disposed of with a direction to the Tribunal to reexamine the merits of the miscellaneous application as dismissed - HELD THAT - As revenue, says that he can have no objection if this court were to direct the Tribunal to re-examine the merits of the miscellaneous application. It is ordered accordingly. The impugned order dismissing MA set aside - The miscellaneous application is restored to its original number and position. Tribunal is directed to pass a fresh order, after hearing the counsel for the parties. List the aforementioned miscellaneous application before the concerned Bench of the Tribunal on 20.10.2023 for directions.

Summary

Issues involved:
The central issue revolves around the valuation of shares of Scorpio Beverages Pvt. Ltd. sold by the petitioner/assessee, with a discrepancy between the valuation by the petitioner and the valuation by the Tribunal.

Judgment Summary:

The petitioner/assessee sought early hearing of the writ petition, which was allowed based on the reasons provided in the application.

The petitioner approached the court to challenge the order passed by the Income Tax Appellate Tribunal regarding the valuation of shares of Scorpio Beverages Pvt. Ltd.

The petitioner valued the shares at Rs. 63.65 per share, while the Tribunal valued them at Rs. 131.86 per share, leading to a dispute.

The petitioner had filed a miscellaneous application pointing out defects in the valuation, which was rejected by the Tribunal deeming it as a review.

The petitioner highlighted that the valuation offered by his wife for the shares was accepted by the Tribunal in a separate appeal.

Upon hearing both parties, the court directed the Tribunal to reexamine the merits of the miscellaneous application, setting aside the impugned order and restoring the application to its original status.

The Tribunal was instructed to pass a fresh order after hearing both parties, scheduling a hearing for the miscellaneous application on a specific date.

The writ petition was disposed of accordingly, with the cancellation of the previously set date for further proceedings.