9911796707
TMI Blog2024 (6) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... t queries to which assessee had duly replied with all evidences. The valuation report is based on the correct method of valuation except for error in mentioning a wrong sub-section. It also comes up that in fact the investor is none other than the parent company M/s Home Soul Infratech Private Limited. Thus, for the reason of lack of inquiry or that the assessment order is not elaborate and does not indicate all the facets of the inquiries made and the conclusion drawn, the assessment order cannot be termed as erroneous insofar as prejudicial to the interests of Revenue. The impugned order u/s 263 of the Act is quashed. - Shri G.S. Pannu, Vice President And Shri Anubhav Sharma, Judicial Member For the Assessee : Shri Kamal Kishan Jetley, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned PCIT, Noida u/s 263 of the Income Tax Act, 1961 ('the Ac') dated 31.03.2023 setting aside the assessment framed w/s 143(3) of the Act and holding the same as erroneous and prejudicial to the interest of the revenue, is unlawful, without jurisdiction and void-ab-initio. 2. On the facts and circumstances of the case and in law, the Ld. PCIT erred in exercising jurisdiction u/s 263 by setting aside the assessment order even though the issue involved has been discussed and scrutinized by the Ld. AO in detail while framing the assessment u/s 143(3) of the Act and after due consideration of assessee's submissions and legal position arrived at his independent opinion which can not be termed as erroneous. 3. On the facts and ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves right to make addition /alteration to the above ground of appeal and also reserves the right to bring on additional grounds of appeal, before and during the course of hearing of this appeal, as consider fit and necessary. 3. On hearing rival sides it comes up that primarily the case of the assessee is that in the assessment proceedings u/s 143(3) of the Act, and before passing the assessment order dated 11.03.2021, the Assessing Officer had specifically raised queries about shares issued by the assessee and the premium charged vide notice u/s 142(1) dated 10.02.2020, made available at page 45 of the paper book and the assessee was able to establish the identity, creditworthiness and genuineness of the investors and also file valuation r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provide documentary evidence to substantiate the identity and ITR of last 3 years of shareholders to substantiate creditworthiness the shareholders as well as the proof of genuineness of transaction in respect of fresh credit of the share capital/premium account. 3) The valuation report with respect to the working of EPS and justification for the quantum of premium. 4) The comparison of the working of EPS and share premium with the immediately prior instance, wherein the shares were allotted with premium. 5) The year wise details of dividend declared during the year and three earlier years. 7. The assessee has responded to same by providing following information to the aforesaid five queries by reply dated 25.02.2020, a copy of which is ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is humbly submitted that the assessee has not declared any dividend in last three years including the year under consideration i.e 2018-19. 8. We have also gone through the valuation report of independent valuer, made available at page 168 of the paper book, which was field before the Assessing Officer and we find that the valuer had mentioned about the method of valuation as follows; Accordingly, we have assessed the fair value of equity shares of the Company as on the date of issuing this report based on the Fair Market Value (FMV) Method in terms of the rules 11U 11UA of the Income Tax Rules, 1962, specified under section 56(2) (viia) of the Income Tax Act, 1961. 8.1 But when we go thoroughly to the report and computation it comes up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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