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TMI Blog2024 (10) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... only in the issue price and FMV. The A.O during the course of assessment proceedings has issued notice u/s. 142(1) and in question No.9 has asked for a detailed note on determination of the fair market value of the issued share as per section 56(2)(viib) and the assessee has submitted the details after which the A.O has not made any addition. ITAT, Delhi Bench in the case of Sakshi Fincap Pvt. Ltd. [ 2024 (5) TMI 1232 - ITAT DELHI] has held that the amendment brought in Rule 11UA was introduced to mitigate hardship faced by taxpayers by the unintended invocation of section 56(2)(viib) r/w Rule 11UA and therefore, the same is a curative amendment. The difference in the fair market value and the issue price of compulsory convertible preferen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 in the show cause notice issued. As such, the order passed u/s 263 is void ab-initio. The action of the Ld. CIT was wholly unreasonable, uncalled for and bad in law. 3. For that in the facts and circumstances of the case, the Ld. PCIT erred in not passing a speaking order against all the submissions of your appellant. As such, the order passed u/s 263 is void ab-initio. The action of the Ld. PCIT was wholly unreasonable, uncalled for and bad in law. 4. For that in the facts and circumstances of the case, the order u/s 263 is merely 'change in opinion'. The order u/s 143(3) passed by the Ld. AO does not in any way represent erroneous order. The action of the Ld. PCIT was wholly unreasonable, uncalled for and bad in law. 5. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not made any addition u/s 56(2)(viib) for difference in issue price and FMV of shares. The Ld PCIT has held the order erroneous and prejudicial to the interest of revenue and set aside the assessment order. The Ld PCIT has held that the A.O has not made complete verification and inquiry in respect of consideration received by the assessee in excess of fair market value to be charged as income from other sources u/s. 56(2) (viib) of the Act and passed order without application of mind. 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that the A.O during assessment proceedings has called for particulars including the valuation of shares under Rule 11UA in the notice u/s. 142(1) of the Act. The Ld. AR has submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, section 56(2)(viib) has no application in such share. 5. The Ld. CIT-Departmental Representative (DR), on the other hand, relied on the order passed by Ld. PCIT. 6. We have heard the rival submissions, and perused the materials available on record. The assessee has issued compulsory convertible preference shares at a price of Rs. 416.69 per share as against the fair market value of Rs. 414 determined as per Rule 11UA. There is difference of 0.65% only in the issue price and FMV. The A.O during the course of assessment proceedings has issued notice u/s. 142(1) and in question No.9 has asked for a detailed note on determination of the fair market value of the issued share as per section 56(2)(viib) and the assessee has submitted the detail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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