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TMI Blog2023 (11) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... a delay of 435 days. 2. Given the nature of delay involved and the reasons stated in the application, the delay is condoned. 3. The application is disposed of, in the aforesaid terms. ITA 520/2023 4. This appeal concerns Assessment Year (AY) 2013-14. 5. Via the instant appeal, challenge has been laid to the order dated 07.07.2021 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"]. 6. The singular issue, even according to Mr Sanjeev Menon, learned standing counsel, who appears on behalf of the appellant/revenue, which arose for consideration before the Tribunal was whether deletion of the addition of Rs. 4,08,60,000/- under Section 68 of the Income Tax Act, 1961 [in short, "Act"] was sustainable? 7. The record shows t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders/depositors both with regard to their name and the amount received and utilisation of the amount is set forth hereafter: DATE OF RECEIPT NAME OF DEPOSITOR AMOUNT RECEIVED DATE OF PAYMENT PURPOSE OF UTILISATION AMOUNT UTILISED 16/10/2012 Mr. Naval Kisore 3,7,00,000.00 16/10/2012 Sri Durga Automobiles 1,70,000.00 19/10/2012 Purchase of Land 3,500,000.00 17/10/2012 India wire General Mills Pvt. Ltd. 1,800,000.00 19/10/2012 Purchase of Land 3,500,000.00 07/11/2012 Mr Naval Kishore 1,000,000.00 12/11/2012 Purchase of Land 1,000,000.00 07/11/2012 India wire General Mills Pvt. Ltd. 1,000,000.00 12/11/2012 Purchase of Land 1,000,000.00 26/11/2012 Atrica Automobiles Pvt. Ltd. 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 500,000.00 11. The CIT(A) has also returned a finding of fact that except for the amounts that were returned to an entity going by the name S.A. Alloys Pvt. Ltd., the loans and deposits received from other persons and entities were converted into share capital. 12. Insofar as S.A. Alloys Pvt. Ltd. was concerned, the loan received was repaid between 03.01.2013 and 05.01.2013. 13. In repayment of this loan, the amount of Rs. 1,70,00,000/- received from Mr Naval Kishore on 31.12.2012 and on 03.01.2013 was utilized. 14. The CIT(A) also records that the respondent/assessee had purchased the afore-mentioned parcels of lands and had the same registered in its name on 13.12.2012. 15. This apart, the CIT(A) in his orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n observation to the effect that share capital and share premium received prior to 29.11.2012 was not covered by Rule 11UA of the Act. This view was taken as said provision was inserted in the Rules only on 29.11.2012. 22. What is not contested is that the respondent/assessee did submit the valuation report concerning the subject shares. In valuing the subject shares, in particular, in arriving at the component concerning premium, it had utilized the Discounted Cash Flow Method [in short, "DCF Method"]. 23. This report, however, was submitted before the CIT(A) and it was admitted by him as additional evidence. 24. As per the valuation carried out by the chartered accountant of the respondent/assessee in terms of Rule 11UA, which permitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard to the provisions of Section 56(2) of the Act was not called for in the instant matter. 31. We are unable to agree with this submission of Mr Menon, for the reason that although the addition was sought to be made under Section 68 of the Act, it was in fact the AO, who had referred to Rule 11UA and Section 56(2) of the Act. 31.1 The AO, as indicated above, proceeded to enquire into the receipt of share premium by the respondent/assessee by adverting to parameters contained in Section 56(2) of the Act. 31.2 As noted above, the AO in fact had asked for a valuation report. Although the respondent/assessee, was remiss in not providing the valuation report to the AO, it had submitted the same to the CIT(A), who examined the said report i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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