2018 (5) TMI 755

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....ed on objective satisfaction, deserves to be deleted. 3. It is contended that EQUITY SHARE VALUE as on the date of issue was fully substantiated ,based on the value on the date of issue of shares, of its assets, including intangible assets in terms of explanation (a)(ii) of sub-section (viib) of section 56(2) which was not considered ,therefore the order be set aside and addition be deleted. 4. Ld. CIT[A] erred to ignore higher Fair market value as provided in explanation (a) to section 56(2) subsection (viib) and did not provide adequate opportunity . 2. Briefly, the facts of the case are that assessee is a company filed return of income declaring NIL income as per normal provisions of I.T. Act. However, tax was paid under section ....

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....g 31st March, 2013. The earning per share for the year ended 31st March, 2013 is Rs. 9.37 per share. If the same profit is added, the book value will come around Rs. 245/-. The assessee company is doing business since more than 20 years and is a profit making company. The assets of the company in the balance sheet are stated at historical cost less depreciation. However, with the time, the value of the immovable assets like land and building has increased manifolds. The assessee has good value of intangible assets like Goodwill. Present value of installing such type of unit has also increased. Therefore, fair market value is more than Rs. 250/-. The Ld. CIT(A) similarly noted that assessee has not brought any material on record to show the ....

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....r business or commercial rights of similar nature, whichever is higher; (b) "venture capital company", "venture capital fund" and "venture capital undertaking" shall have the meanings respectively assigned to them in clause (a), clause (b) and clause (c) of (Explanation) to clause (23FB) of section 10;)" 3.1. Proviso of the above Section provides that this clause shall not apply in certain circumstances and explanation provides that fair market value of the shares shall be the value - (ii) as may be substantiated by the Company to the satisfaction of the A.O, based on value, on the date of issue of shares of its assets, including tangible assets being goodwill, knowhow, patents, copy rights, trade marks, licenses, franchises or any other....