2023 (1) TMI 533

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.... 2. None appeared on behalf of the assessee. We have seen from the record that the appeal was instituted by the assessee on 24.1.2018, and since then as many as 26 times the matter has been listed for hearing and except on one occasion the assessee has remained unrepresented throughout despite services of notices through RPAD post and even being informed tele-phonically of the hearing in the appeal. It is clear from the record that the assessee is no longer interested in pursuing its appeal. It was therefore decided to go ahead with the adjudication of the appeal ex parte qua the assessee on the basis of material available before us. 3. The grounds raised by the assessee are as under: " 1. The assessee has made the Share Valua....

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....ome Tax Act, 1961 and totally ignored the valuation certificate provided by Chartered Accountant on Discounted Cash Flow Method which was justifying the valuation of shares for further allotment or shares to shareholders. 5. The learned assessing officer must interpret the law liberally in view of fact and materiality based on various judgments. The appellant craves leave to add, alter or amend all the above grounds of appeal at or during the course of hearing." 4. The issue in the present appeal, as is evident from grounds raised by the assessee, relates to addition made to the income of the assessee under section 56(2)(viib) of the Act on account of excess premium of Rs.83,25,900/- allegedly received by the assessee, ....

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....Rs.95.18 - Rs.10 )per share to be justified . The addition made pertaining to the balance premium was therefore upheld and which amounted to Rs.12,98,550/- Aggrieved by this order of the ld.CIT(A) the assessee has come up in appeal before us. 6. We have gone through order of the ld.CIT(A). His finding in rejecting valuation of shares submitted by the assessee at Rs.1137.27 per share as per the valuation done by the CA and valuation at Rs.122.64 per share on the basis of book value has been dealt with in para 2.6 and 2.7 of his order. Further, held.CIT(A) has considered the valuation done by the assessee on the basis of book value of shares at Rs.95.18 per share at para 2.7 of his order accepting the valuation. The relevant finding of the....

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....d. 10. In the result, appeal of the assessee is dismissed. Order pronounced in the Court on 11th January, 2023 at Ahmedabad. ============= Document 1 2.5. It is evident that book value of the share is Rs.95.18 per share as under:- Share valuation as per Rule 11U/11A Total Assets Total liabilities Total Assets (Land) Rs. Particulars 4464895 Current liabilities Rs. 203421 Closing stock 605167 Loans о Loans and Advances 0 Total Liabilities 203421 Cash 82120 Bank Other Current Assets Total Assets 31560 5183742 Add: Apportioned Profit 7474.734247 Total Assets Liabilities PV Total PE (AS ON 1/4/2013) 4987795.734 10 524000 Fair Marke....