2016 (8) TMI 1361

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.... valuation of shares held in Visteon Powertrain Control Systems India Pvt. Ltd. 3. Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, submitted that for the purpose of transfer of shares held by the assessee in Visteon Powertrain Control Systems India Pvt. Ltd., the assessee valued the same at Rs. 10.32 per share. However, the Assessing Officer estimated the valuation at Rs. 36.31 per share. Referring to the order of this Tribunal dated 12.11.2013 in I.T.A. No.17(Mds)/2012 in M/s VIHI, LLC, v. Addl DIT (International Taxation) [2014] 62 SOT 25/42 taxmann.com 304 (Chennai - Trib) the Ld.counsel submitted that VIHI is also one of the co-transferors. In that case, the Tribunal accepted the valuation made by the assessee at Rs. 10.32 pe....

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....ince there was transaction of sale of shares between the assessee-company and Visteon International Holdings Mauritius Ltd., the Assessing Officer found that the transaction has to be made only at arm's length price. The Transfer Pricing Officer, by adopting cash discount method of valuation, had determined the value of 7366765 shares of Visteon Powertrain Control Systems India Pvt. Ltd. at Rs. 81,15,78,422/-. In other words, the Transfer Pricing Officer determined the value of shares by following the cash discount method at Rs. 36.31 per share. According to the Ld. D.R., the average value of share, as per Chartered Accountant's valuation was Rs. 22.50 per share as on 31.03.2007. Despite this valuation, according to the Ld. D.R., th....

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....unal in I.T.A. No. 17/Mds./2012 dated 12.11.2013. 8. We have carefully gone through the order of this Tribunal for the assessment year 2007-08 in VIHI, LLC in I.T.A. No.17/Mds/2012. In the case before this Tribunal, the assessee, VIHI transferred the shares of Visteon Powertrain Control Systems India Pvt. Ltd. to M/s Visteon International Holdings Singapore Pte Ltd. and to M/s Visteon International Holdings Mauritius Ltd. for Rs. 10.32 per share. The assessee has obtained valuation certificate from M/s Delloite Haskins & Sells, Chartered Accountants. However, the Assessing Officer determined the arm's length price of the value of shares at Rs. 36.31 per share. This Tribunal after examining the facts of the case, ultimately found that....

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....transferred the same. Due to time gap, the fluctuation in the market rate and value of capital asset of the company have to be taken into consideration for the purpose of valuing the shares under DCF method. Therefore, the valuation made for the assessment year 2007-08 cannot be the same for assessment year 2013-14. Since the Assessing Officer has followed DCF method, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly confirmed the order of the Assessing Officer. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. 11. The assessee has also raised an issue with regard to reopening of assessment. 12. As seen from the grounds of appeal, t....