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Colour Creation Pvt. Ltd. Vs. Assistant Commissioner of Income Tax

Case No: ITA No.2418/Del/2025
Court: Income Tax Appellate Tribunal, Delhi Benches ‘A’
Date: 1/21/2026

Parties Involved

appellantColour Creation Pvt. Ltd.
respondentAssistant Commissioner of Income Tax

Facts Summary

The assessee, Colour Creation Pvt. Ltd., filed its return of income for assessment year 2017-18 declaring a loss. The case was selected for scrutiny, and notices under sections 143(2) and 142(1) were served. The assessing officer issued a show cause notice regarding the valuation of equity shares and share premium. The assessee submitted a valuation report and audited balance sheet. The assessing officer disallowed a difference of Rs. 0.23 per share and added Rs. 3,22,000 to the return of income

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the order passed by the learned CIT (Appeals) is bad in the eye of law and on the facts.
  • 2. Whether the learned CIT (Appeals) erred in passing the order without giving the assessee a proper and adequate opportunity of being heard.

1 more legal issue analysed in this judgement.

Precedents Relied Upon

2 precedents cited in this judgement.

Judgment Outcome

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Version 2.0.1Last updated: October 2025
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