Reopening of assessment cannot rest solely on an audit party's opinion; reassessment under Section 147/148 is impermissible and power of revision shou...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustmen...
Section 56(2)(viib) and Rule 11UA require fair market value to be determined afresh each time unquoted equity shares are issued, so a valuation report from a prior year cannot automatically justify a later premium. A joint venture agreement may govern subscription terms between parties, but it cannot displace the statutory valuation requirement for income computation. On the facts, the assessee had not obtained a fresh DCF valuation for the year under appeal, and the AO had not secured an independent valuation. The earlier accepted report could not be rejected on the basis adopted by the AO, but the premium had to be examined again on a fresh valuation basis. The matter was remanded to the AO for reconsideration in accordance with law.
Section 56(2)(viib) and Rule 11UA require fair market value to be determined afresh each time unquoted equity shares are issued, so a valuation report from a prior year cannot automatically justify a later premium. A joint venture agreement may govern subscription terms between parties, but it cannot displace the statutory valuation requirement for income computation. On the facts, the assessee had not obtained a fresh DCF valuation for the year under appeal, and the AO had not secured an independent valuation. The earlier accepted report could not be rejected on the basis adopted by the AO, but the premium had to be examined again on a fresh valuation basis. The matter was remanded to the AO for reconsideration in accordance with law.
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