TaxTMI 
TaxTMI 
2023 (8) TMI 763
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....62,000/- without appreciating the fact that the funds for share premium was received through proper banking channels and the Assessing Officer has made addition without rejecting the valuation report submitted by the assessee during the course of assessment proceedings. 3. Briefly stated, the facts of the case are that the assessee company is engaged in the business of providing riders to the e-commerce operators or other business operators. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has received security premium on allotment of shares to individuals and companies after computing the share value on the basis of Discounted Cash Flow Method at Rs. 6,512/- per share. The list of all....
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.... 6.17 Cr Actual (Rs.) 0.66 Cr 0.77 Cr 0 Variation (Rs.) 2.99 Cr 3.97 Cr. 6.17 Cr. 5. To find out the basis of projection, projected by the valuer, the Assessing Officer issued summons u/s 131 of the Act. One of the partners appeared before the Assessing Officer and contended that the valuer had submitted the copy of Valuation certificates and all projections/ documents were provided by the management and on the basis of which fair value of share was calculated. 6. The Assessing Officer was of the opinion that the partner of the valuer firm has not provided any logical submission in respect of calculation of fair value of shares and on subsequent dates, none ....
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.... said valuation report. The said valuation report has been rejected only because there were differences between actuals and projection done by the valuer. 13. The coordinate bench in the case of India Today Online Pvt Ltd [supra] on similar issue has held as under: "31. One of the cardinal principles of interpretation of fiscal statute is that they should be strictly construed and so long as the provision is free from any ambiguity, there should be no need to draw any analogy. A deeming provision on the other hand is intended to enlarge the meaning of a particular word which includes matters which otherwise may or may not fall within the normal provision, therefore, it should be extended to the consequences and incidents which h....
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....erson in terms of 11U, we are of the opinion the same would only be relevant, when the Valuer has done the valuation in the manner prescribed in 11U and 11UA, because it is in Rule 11 such a condition has been prescribed. If assessee has not opted for 11U & 11UA, then all those guidelines and formulas given therein would not apply and Ld. CIT(A) cannot thrust upon the assessee the option should be exercised only under 11U and 11UA, which admittedly at the time of issuance of shares such method was not even prescribed in the statute. Prior to Rule 11UA, Net Asset Value method was accepted method in which no discrepancy has been pointed by the Ld. CIT (A). First of all, the valuation of the shares of Mail Today has been done under DCF method ....
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....ilarly, the coordinate bench in the case of Cinestaan Entertainment Pvt Ltd [supra] has held as under: "27. Now what we are required to examine whether under these facts and circumstances Assessing Officer after invoking the deeming provision of Section 56(2)(vii) could have determined the fair market value of the premium on shares issued at Nil after rejecting the valuation report given by the Chartered Accountant on one of the prescribed methods under the rules adopted by the Valuer. Before us, learned counsel, Mr. Dinodia, first of all had harped upon the spirit and intention of the Legislature in introducing such a deeming provision and submitted that such a provision cannot be invoked on a normal business transaction of issuan....