Case Number: ITA 97/DEL/2021
Appellant: Manhar Yarns Private Limited, Ballabgarh
Respondent: ITO Ward-1(5), Faridabad
Assessment Year: 2016-17
Date of Filing: 2021-02-09
Order Type: Final Tribunal Order
Date of Order: 2023-06-20
Pronounced on: 2023-06-20
The appeal involves Manhar Yarns Private Limited challenging the order passed by the CIT(A) for the assessment year 2016-17. The primary dispute revolves around significant additions under Section 68 related to alleged unexplained share capital and premium, and under Section 56(2)(viib) for allegedly overvalued share premiums.
The tribunal examined various issues:
The tribunal’s decision partly allowed the appeal, particularly in relation to the disputed additions under Section 68 and the income enhancement under Section 56(2)(viib). This case underscores the necessity for proper documentation and compliance with prescribed valuation methods when justifying share premiums and capital contributions.
“Order pronounced in the open court on 20th June, 2023.”
Signed by:
DR. B. R. R. KUMAR
Accountant Member
YOGESH KUMAR U.S.
Judicial Member
Date: 20/06/2023
Manhar Yarns Private Limited vs. ITO Ward-1(5), Faridabad: Share Premium Controversy for AY 2016-17
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform