SECUREINTELI TECHNOLOGIES PVT. LTD.,COIMBATORE V. DCIT, CORPORATE CIRCLE-1, COIMBATORE

ITA 3005/CHNY/2025

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The case involves Secureinteli Technologies Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, concerning an addition made under section 56(2)(viib) of the Income Tax Act, 1961, for the Assessment Year 2022-23. The assessee had issued shares at a premium, and the AO added the entire premium amount as income due to the absence of a substantiated valuation report. The CIT(A) upheld this addition, mistakenly believing the valuation report submitted was for a different entity. The Tribunal, upon review, directed the AO to re-examine the valuation report, which was actually for the assessee under its previous name, and to decide the matter afresh.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837532 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2022-2023
• Appeal Filed On: 30-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: N.V. NARAYANAN
• Keywords: Valuation report

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ Ɋायपीठ, चेɄई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI ŵी एबी टी. वकŎ, Ɋाियक सद˟ एवं सुŵी पदमावती यस, लेखा सद˟ क े समƗ BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3005/Chny/2025 िनधाŊरण वषŊ /Assessment Year: 2022-23 Secureinteli Technologies Pvt. Ltd., 81, Thirumalaisamy Street, New Siddhapudur, Coimbatore – 641 044. PAN: AAFCB 9383H Vs. The Dy. Commissioner of Income Tax, Corporate Circle-1, Coimbatore. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथŎ की ओर से/ Appellant by : Mr.N.V.Narayanan, Advocate ŮȑथŎ की ओर से /Respondent by : Mr. Bipin C.N, CIT सुनवाई की तारीख/Date of Hearing : 12.02.2026 घोषणा की तारीख /Date of Pronouncement : 17.02.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 26.08.2025 for Assessment Year (AY) 2022-23. The grounds raised by the assessee pertain to the issue of addition towards share premium. 2. The assessee is company and filed the return of income for AY 2022- 23 on 07.11.2022 declaring total income of Rs.1,66,03,040/-. During the year under consideration, the assessee has issued 1,43,360 shares whose face value Printed from counselvise.com ITA No.3005/Chny/2025 Secureinteli Technologies Pvt. Ltd. :- 2 -: is Rs.10/share at a premium of Rs.270.50/share to M/s.Accel Limited. The Assessing Officer (AO) called on the assessee to furnish the valuation report in support of the valuation of shares. Since the assessee did not furnish any further details, the AO completed the assessment by adding the entire premium amount as addition u/s.56(2)(viib) of the Act. Aggrieved the assessee filed further appeal before the CIT(A). The CIT(A) upheld the addition stating that the valuation report furnished by the assessee before him, is that of a different entity M/s.Bizbarta Technologies India Pvt Ltd. The assessee is in appeal before the Tribunal against the order of the CIT(A). 3. We heard the parties and perused the material on record. The AO made an addition u/s.56(2)(viib) towards shares issued at a premium for the reason that the assessee has not substantiated the premium with a valuation report. The CIT(A) upheld the addition on the ground that the valuation report furnished by the assessee pertain to a different entity. During the course of hearing the ld AR submitted that name of the assessee company is changed from M/s.Bizbarta Technologies India Pvt Ltd. to the present name i.e. Secureinteli Technologies Pvt. Ltd. The ld AR in this regard submitted the certificate incorporation issued in the present name of the assessee stating that the name has undergone change. The ld AR also submitted that the assessee furnished the valuation report in the erstwhile name of the assessee which has been rejected by the CIT(A) stating that the valuation report is that of a different entity. From the perusal of the records and the findings of the CIT(A), it is clear that the CIT(A) has rejected the valuation report submitted by the assessee based on the misunderstood fact and that the valuation report submitted in the name of M/s.Bizbarta Technologies India Pvt Ltd is that of the assessee. Accordingly we are of the view that the CIT(A) is not correct in Printed from counselvise.com ITA No.3005/Chny/2025 Secureinteli Technologies Pvt. Ltd. :- 3 -: rejecting the valuation report. Considering that the valuation report was not examined on merits by the lower authorities, we are inclined to give one more opportunity to the assessee to submit the report. Accordingly we are remitting the appeal back to the AO with a direction to consider the valuation report submitted by the assessee justifying the share premium and decide the correctness of the claim in accordance with law. The assessee is directed to submit the valuation report and other relevant documents as may be called for and cooperate with assessment proceedings. It is ordered accordingly. 4. In result the appeal of the assessee is allowed for statistical purposes. Order pronounced on 17th day of February, 2026 at Chennai. Sd/- Sd/- (एबी टी. वकŎ) (ABY. T. Varkey) ᭠याियक सद᭭य / Judicial Member (पदमावती यस) (Padmavathy.S) लेखा सदèय /Accountant Member चेÛनई/Chennai, Ǒदनांक/Dated: 17th February, 2026. EDN, Sr. P.S आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF Printed from counselvise.com "