Meenu Paper Mills P. Ltd. v. ACIT (2018) 64 ITR 709 (Delhi) (Trib)

S. 56 : Income from other sources -Receipt of shares without adequate consideration or for inadequate consideration — Assessee Filing Reply Before Assessing Officer supported by documentary evidence with certificate of Chartered Accountant and report of registered Valuer — AO was directed to decide issue a fresh [ S.56(2) viib)]

Assessee  issued 50,000 shares of the face value of Rs. 100 at share premium of Rs. 150. The book value of the shares fair market value was Rs. 240.89 as per the computation furnished by the assessee, whereas the shares were issued at Rs. 250. The AO made an addition Rs. 4,55,500  which was confirmed by the CIT(A). On appeal the  Tribuanl held that  income of the assessee. The Commissioner (Appeals) confirmed the addition. On appeal  the Tribunal held that  Assessee  has filed  certificate of Chartered Accountant and report of registered valuer. The Explanation to section 56(2)(viib) of the Income-tax Act, 1961 had not been considered by the authorities. Therefore the matter was restored to the Assessing Officer with a direction to redecide this issue in the light of the reply and the material filed by the assessee on record in the light of the Explanation to section 56(2)(viib) .(AY.2013-14)