M/s. Innaccel Technologies Private Limited, Bangalore Assistant Commissioner Of Income Tax, Circle- 3(1)(1), Bangalore

Last updated: 30 December 2020

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Innaccel Technologies Private Limited is appealing a decision by the CIT(A) that confirmed an addition of over £3.74 million in share premium. This addition was made by the Assessing Officer under Section 56(2)(viib) of the Income Tax Act. The company had issued shares at a significant premium, supported by a valuation report using the discounted cash flow method.

Court :
ITAT Bangalore

Brief :
The assessee has filed this appeal challenging the order dated 03-12-2019 passed by Ld CIT(A)-3, Bengaluru and it relates to theassessment year 2016-17. The assessee is aggrieved by the decisionof Ld CIT(A) in confirming the addition of share premium amount of Rs.3,74,90,118/- made by the AO u/s 56(2)(viib) of the Income-tax Act,1961 ['the Act' for short].

Citation :
ITA No.146/Bang/2020

IN THE INCOME TAX APPELLATE TRIBUNAL
“C’’ BENCH: BANGALORE

BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER
AND
SHRI B.R. BASKARAN, ACCOUNTANT MEMBER

ITA No.146/Bang/2020
Assessment Year: 2016-17

M/s. Innaccel Technologies Private Ltd.
5th Floor, Municipal No.4, Anand
Towers, Raja Ram Mohan Roy Road,
Ward No.77, Sampangiramnagar,
Bengaluru, Karanataka 560 025
PAN NO : AADCI0623H
APPELLANT

Vs.

ACIT
Circle-3(1)(1)
Bengaluru
RESPONDENT

Appellant by : Shri Siddana Biradar, A.R.
Respondent by : Smt. R.Premi, D.R.
Date of Hearing : 16.12.2020
Date of Pronouncement : 16.12.2020

O R D E R

PER B.R. BASKARAN, ACCOUNTANT MEMBER:

The assessee has filed this appeal challenging the order dated 03-12-2019 passed by Ld CIT(A)-3, Bengaluru and it relates to theassessment year 2016-17. The assessee is aggrieved by the decisionof Ld CIT(A) in confirming the addition of share premium amount of Rs.3,74,90,118/- made by the AO u/s 56(2)(viib) of the Income-tax Act,1961 ['the Act' for short].

2. The facts relating to the case are stated in brief. The assessee company is engaged in the business of designing, manufacturing, developing, exporting and supplying cutting edge medical devices to address critical unmet healthcare needs. During the year under consideration, it has issued 20,304 equity shares having face value of Rs.10/- each at price of Rs.2,100.10/- per share to resident investors. The assessee thus collected share premium of Rs.4.24 crores. The assessee furnished a valuation report in support of the share premium amount collected by it, wherein shares had been valued under discounted cash flow method (DCF method).

To know more in details find the attachment file