Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
Issuance of shares to existing promoters was examined under section 56(2)(viib) with the central question being proper determination of fair market value (FMV). ITAT held that the assessing officer could not substitute the Discounted Cash Flow (DCF) method adopted under Rule 11UA and that the DCF valuation was based on reasonable assumptions, accordingly the premium was not excessive and the addition under section 56(2)(viib) was deleted. ITAT further held that no allegation of unaccounted funds existed so the related party infusion could not be taxed as deemed income; application of the NAV method produced an even higher FMV.
Issuance of shares to existing promoters was examined under section 56(2)(viib) with the central question being proper determination of fair market value (FMV). ITAT held that the assessing officer could not substitute the Discounted Cash Flow (DCF) method adopted under Rule 11UA and that the DCF valuation was based on reasonable assumptions, accordingly the premium was not excessive and the addition under section 56(2)(viib) was deleted. ITAT further held that no allegation of unaccounted funds existed so the related party infusion could not be taxed as deemed income; application of the NAV method produced an even higher FMV.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4915 
