Income Tax Appellate Tribunal - Chennai
Sb Industrial Engineering Pvt Ltd., ... vs Acit Corporate Circle 6(1), Chennai on 12 April, 2019
आयकर अपील य अ धकरण, 'सी' यायपीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL
'C' BENCH, CHENNAI
ी एन.आर.एस. गणेशन, या यक सद य एवं
ी एस. जयरामन, लेखा सद य केसम$
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER
AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER
रोक या चका सं/ S.P. No.128/Chny/2019
(in I.T.A. No.861/Chny/2019)
नधा&रण वष& / Assessment Year : 2015-16
M/s SB Industrial Engineering The Assistant Commissioner of
Pvt. Ltd., v. Income Tax,
nd
RVI Towers, 2 floor, Corporate Circle - 6(1),
149, Velachery Tambaram High Road, Chennai - 600 034.
Pallikaranai, Chennai.
PAN : AANCS 9476 Q
()ाथ&क/Petitioner) ()+यथ,/Respondent)
)ाथ&क क. ओरसे /Petitioner by : Ms. P.M. Anuradha, Advocate
)+यथ, क. ओर से/Respondent by : Shri R. Clement Ramesh Kumar,
Addl.CIT
सन
ु वाई क. तार ख/Date of Hearing : 12.04.2019
घोषणा क. तार ख/Date of Pronouncement : 12.04.2019
आदे श /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
The assessee has filed the present Stay Petition praying for stay of recovery of outstanding amount for the assessment year 2015-16.
2 S.P. No.128/Chny/19
2. Ms.P.M. Anuradha, the Ld.counsel for the assessee, submitted that the only issue arises for consideration is valuation of equity shares of the assessee-company. According to the Ld. counsel, the Assessing Officer rejected the fair market value of the shares at ₹107.95 per share and estimated the fair market value at ₹18.97 per share. The excess amount determined by the Assessing Officer was taken as undisclosed income to the extent of ₹1,92,15,676/-. According to the Ld. counsel, the assessee valued the shares by adopting cash flow method. According to the Ld. counsel, cash flow method is also one of the methods accepted by the accounting principles for valuation of shares. Therefore, according to the Ld. counsel, there is a prima facie case in favour of the assessee.
3. We heard Shri R. Clement Ramesh Kumar, the Ld. Departmental Representative also. As rightly submitted by the Ld.counsel for the assessee, the Assessing Officer estimated the value of shares at ₹18.97 per share as against the estimation made by the assessee at ₹107.95 per share. Whatever may be the method adopted by the assessee, the valuation of shares involves little bit of estimation. Since there is an estimation, it would differ from person to person. In other words, the estimation of fair market 3 S.P. No.128/Chny/19 value of the unquoted equity shares of the assessee-company would differ from person to person. Therefore, this Tribunal is of the considered opinion that there is a prima facie case for grant of stay. The balance of convenience is also in favour of the assessee. Accordingly, recovery of outstanding amount for the assessment year 2015-16 is hereby stayed for a period of six months from today.
4. With the above observation, the Stay Petition filed by the assessee stands allowed.
Order pronounced in the open court after conclusion of hearing on 12th April, 2019 at Chennai.
sd/- sd/-
(एस. जयरामन) (एन.आर.एस. गणेशन)
(S. Jayaraman) (N.R.S. Ganesan)
लेखा सद य/Accountant Member या यक सद य/Judicial Member
चे नई/Chennai,
th
4दनांक/Dated, the 12 April, 2019.
Kri.
आदे श क. ) त5ल6प अ7े6षत/Copy to:
1. )ाथ&क/Petitioner
2. )+यथ,/Respondent
3. आयकर आयु8त (अपील)/CIT(A)
4. आयकर आयु8त/CIT
5. 6वभागीय ) त न ध/DR
6. गाड& फाईल/GF.
4 S.P. No.128/Chny/19