https://www.taxtmi.com/caselaws?id=752532 The ITAT Delhi upheld the AO's addition under section 56(2)(viia) for purchase of shares above fair market value. The tribunal found that the assessee's valuation reports failed to properly incorporate the value-weightage of the issuing entity's assets, particularly prime real estate holdings. The appellant could not rely on entities subject to litigation and loan restructuring to justify lower valuations. The tribunal emphasized that robust assets like prime real estate must be considered in share valuation, and shares with such backing would not be sold at throwaway prices without proper consideration mechanisms. The AO was justified in questioning valuation reports that didn't align with asset-based valuation methods. The appeal was dismissed. en-us Thu, 09 May 2024 00:00:00 +0530 Fri, 10 May 2024 14:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752532 The ITAT Delhi upheld the AO's addition under section 56(2)(viia) for purchase of shares above fair market value. The tribunal found that the assessee's valuation reports failed to properly incorporate the value-weightage of the issuing entity's assets, particularly prime real estate holdings. The appellant could not rely on entities subject to litigation and loan restructuring to justify lower valuations. The tribunal emphasized that robust assets like prime real estate must be considered in share valuation, and shares with such backing would not be sold at throwaway prices without proper consideration mechanisms. The AO was justified in questioning valuation reports that didn't align with asset-based valuation methods. The appeal was dismissed. Case-Laws Income Tax Thu, 09 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752532