Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
Specified income of Baddi Barotiwala Nalagarh Development Authority receives conditional tax exemption, retrospectively covering its designated assess...
Specified development authority income receives retrospective tax exemption, subject to non-commercial activity, unchanged income sources, and return-...
Unified Brand India framework introduces voluntary Trust Mark certification and funding support for export branding, packaging and global promotional ...
Origin Declaration authentication governs preferential tariff claims under India-UK CETA, requiring a validated reference number before import clearan...
Separate assessment orders for different years remain valid when distinct notices and hearing opportunities prevent prejudice from combined proceeding...
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.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4801
Join Channel
TaxTMI 
