Rectification of mistake remains limited to self-evident record errors, preventing merits review through miscellaneous applications and preserving fin...
Tender creditworthiness conditions may extend to de facto Promoter Directors, with post-participation challenges generally barred absent arbitrariness...
Corporate representation in PMLA summons proceedings permitted through an authorised signatory, subject to directors' continuing cooperation and atten...
Helicopter charter classification requires effective control analysis, while territorial performance, reasoned credit orders and wilful suppression de...
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The Income Tax Appellate Tribunal (ITAT) examined the addition made u/s 56(2)(viib) for the difference between the market value and consideration received for shares issued by the assessee company. The Assessing Officer (AO) adopted the book value as on 31.03.2011, while the assessee relied on the revalued figure of land and buildings as on 31.10.2011. The assessee issued shares at Rs. 250/- with a premium of Rs. 240/- per share based on a draft valuation report, which the AO reworked using the book value, arriving at Rs. 138.50 per share. As per Rule 11UA, for unquoted shares, the Fair Market Value (FMV) should be determined based on the book value of assets and liabilities as on the valuation date for Section 56(2)(viib) purposes. The ITAT found that the AO's adoption of the 31.03.2011 value was incorrect, but the assessee failed to substantiate the basis of valuation and provide proper accounts as on the valuation date. Consequently, the ITAT remitted the issue back to the AO for a de novo examination, directing the assessee to produce relevant documents substantiating the valuation of land, buildings, and shares at Rs. 250/- per share, and the AO to decide in accordance with law based on the evidence submitted.
The Income Tax Appellate Tribunal (ITAT) examined the addition made u/s 56(2)(viib) for the difference between the market value and consideration received for shares issued by the assessee company. The Assessing Officer (AO) adopted the book value as on 31.03.2011, while the assessee relied on the revalued figure of land and buildings as on 31.10.2011. The assessee issued shares at Rs. 250/- with a premium of Rs. 240/- per share based on a draft valuation report, which the AO reworked using the book value, arriving at Rs. 138.50 per share. As per Rule 11UA, for unquoted shares, the Fair Market Value (FMV) should be determined based on the book value of assets and liabilities as on the valuation date for Section 56(2)(viib) purposes. The ITAT found that the AO's adoption of the 31.03.2011 value was incorrect, but the assessee failed to substantiate the basis of valuation and provide proper accounts as on the valuation date. Consequently, the ITAT remitted the issue back to the AO for a de novo examination, directing the assessee to produce relevant documents substantiating the valuation of land, buildings, and shares at Rs. 250/- per share, and the AO to decide in accordance with law based on the evidence submitted.
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