Case Number: ITA 781/DEL/2021
Appellant: Logicladder Tech Pvt. Ltd., Gurgaon
Respondent: Pr. CIT, Faridabad
Assessment Year: 2016-17
Case Filed on: 2021-06-23
Order Type: Final Tribunal Order
Date of Order: 2022-07-21
Pronounced on: 2022-07-21
This case involves Logicladder Tech Pvt. Ltd., a company based in Gurgaon, and the Principal Commissioner of Income Tax (Pr. CIT) of Faridabad. The appellant filed an appeal against the revision order passed under Section 263 of the Income Tax Act by the Pr. CIT for the assessment year 2016-17.
The appellant was represented by Sh. Surajbhan Nain, Advocate, while the respondent was represented by Ms. Rinku Singh, Commissioner of Income Tax – Departmental Representative (CIT-DR for Revenue).
The grounds of appeal as presented by the appellant were as follows:
In this case, the assessment order dated December 12, 2018, determined the assessee’s total income at Rs. 25,20,430/-. The Pr. CIT’s revision order under Section 263 directed the AO to tax the excess share premium of Rs. 1,14,43,484/- under Section 56(2)(viib) of the Income Tax Act.
During the appellate proceedings in the Income Tax Appellate Tribunal (ITAT), the appellant filed two letters dated October 8, 2021, and July 9, 2022, requesting the admission of additional evidences in the form of Valuation Reports of Fair Value of Unquoted Equity Shares for Section 56(2)(viib) purposes. These reports were dated March 25, 2014, and April 12, 2015.
The appellant argued that they were prevented by sufficient cause from producing these documents earlier and that these Valuation Reports were crucial for deciding the appeal. The appellant requested that these reports be admitted and that the issues be set aside to the Pr. CIT for a fresh order considering these reports.
The CIT-DR for Revenue agreed with the appellant’s submission, supporting the admission of the Valuation Reports and the remand of the case to the Pr. CIT for a fresh order.
The tribunal, comprising Shri Chandra Mohan Garg, Judicial Member, and Shri Anadee Nath Misshra, Accountant Member, admitted the additional evidences by way of Valuation Reports. The tribunal set aside the issues in dispute to the Pr. CIT, directing them to pass a fresh order after considering the Valuation Reports and providing a reasonable opportunity to the assessee.
In conclusion, the appeal was partly allowed for statistical purposes. The tribunal emphasized the need for a fresh order by the Pr. CIT, taking into account the additional evidences and following due legal procedures.
Order pronounced in the open Court on 21/07/2022
Signed:
Chandra Mohan Garg, Judicial Member
Anadee Nath Misshra, Accountant Member
Assistant Registrar, ITAT, New Delhi
Logicladder Tech Pvt. Ltd. vs. Pr. CIT: Appeal on Section 263 Revision Order – ITA 781/DEL/2021
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