Trilok Chand Jaiswal & Shambhoo Dayal Jaiswal vs. Principal Commissioner of Income Tax, Raipur-1

Parties Involved

Facts Summary

The assessees, Trilok Chand Jaiswal and Shambhoo Dayal Jaiswal, appealed against the orders of the Principal Commissioner of Income Tax, Raipur-1, passed under Section 263 of the Income Tax Act, 1961. The appeals were directed against the separate orders passed for the Assessment Year 2016-17, dated 30.03.2024. The appeals were filed due to the valuation of shares of M/s Vandana Trailors and Body MFG Pvt. Ltd. allotted to the assessees. The assessees argued that the Principal Commissioner erred in invoking Section 263 and setting aside the assessment order for fresh inquiry. The assessees claimed that the assessment order was neither erroneous nor prejudicial to the interest of the revenue. The assessees were engaged in the business of trolley manufacturing and had income from remuneration and interest from partnership firms. The Income Tax Officer initiated re-assessment proceedings after discovering that the assessees had not responded to information called for under Section 133(6) of the IT Act. The assessees argued that the valuation of shares was computed based on the date of allotment, which was lower than the issued price, and thus, the provisions of Section 56(2)(vii)(c)(ii) of the IT Act did not apply. The Principal Commissioner set aside the assessment order for fresh adjudication, which the assessees challenged.…

Legal Issues

• 1. Whether the Principal Commissioner erred in invoking Section 263 and setting aside the assessment order for fresh inquiry.
• 2. Whether the valuation of shares was correctly computed based on the date of allotment.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Harish Chandra Baldewa vs. Income Tax Officer

  Kolkata bench

• Saurabh Sumant Patwa and Kalpana Saurabh Patwa vs. Pr.CIT-3

  Ahmedabad bench

• Bhavna Impex vs. Principal Commissioner of Income Tax

  Ahmedabad bench

• Adani Green Energy Limited vs. Principal Commissioner of Income Tax

  Ahmedabad bench

• Go Fashion (India) Ltd. vs. The Principal Commissioner of Income Tax

  Chennai bench

• Jagatjeet Singh vs ACIT

  Delhi Bench 'A', New Delhi benchAY 2022-23Dismissed