TaxTMI 
TaxTMI 
2020 (10) TMI 1083
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....IT(Appeals) in so far as it is prejudicial to the interest of revenue, is opposed to law and the facts and circumstances of the case. 2. The ld. CIT(A) erred in deleting the addition of Rs. 6,40,18,500/- u/s. 56(2)(vii), the excess amount of share premium received on allotment of equity shares. 3. Whether on the facts and in circumstances of the case and in law, the ld. CIT(A) is right in accepting the additional evidence submitted during the course of appellate proceedings without giving an opportunity to the AO to examine the fresh evidences as required under Rule 46A. 4. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the ld. CIT(A) be reversed an....
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....a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares: Provided that this clause shall not apply where the consideration for issue of shares is received- (i) by a venture capital undertaking from a venture capital company or a venture capital fund; or (ii) by a company from a class or classes of persons as may be notified by the Central Government in this behalf. Explanation.-For the purposes of this clause,- (a) the fair mark....
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....ing Officer, based on the value, on the date of issue of shares, of its assets, including intangible assets being goodwill, know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, 5. As per the Explanation to Sec.56(2)(viib) of the Act, fair market value (FMV) is prescribed under the Rules. Besides the above, the AO also noticed that the CA in valuing the shares had adopted Discounted Cash Flow (DCF) method. According to the Assessee the DCF method was a permitted method of valuation in terms of Rule 11UA(2)(b) of the Income Tax Rules, 1962 (Rules) read with Sec.56(2)(viib) of the Act. The Assessing Officer did not accept the explanations of the Assessee and he was of ....
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....the basis of conclusion of CIT(Appeals) is the financial statements filed by the assessee before him, it was incumbent upon the CIT(A) to have confronted the material filed before him to the AO in accordance with the mandate of Rule 46A of the I.T. Rules, 1962. 8. The ld. counsel for the assessee also filed before us a copy of the decision of the Tribunal in the case of M/s. VBHC Value Homes Private Limited, Bangalore v. ITO in ITA No.2541/Bang/2019, order dated 12.6.2020 wherein the Tribunal followed the decision of the Hon'ble Bombay High Court in the case of Vodafone M-Pesa Ltd. v. Pr.CIT, 256 Taxmann 240. The ld. counsel for the assessee submitted that as per the ratio laid down in the aforesaid decision, the DCF method adopted by th....