TaxTMI 
TaxTMI 
2025 (9) TMI 32
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....y is only of 72 days. It was stated in the condonation petition that the delay has occurred due to obtaining the administrative approvals from the competent authorities, which took quite a long time and accordingly, the delay may be condoned. The ld. AR, on the other hand, did not oppose the condonation of delay. Considering the reasons cited before us, we are inclined to condone the delay and admit the appeal for hearing. 03. The only issue raised by the revenue in various grounds of appeal is against the deletion of addition of Rs.8,92,98,728/- as made by the ld. AO in respect of share premium under section 56(2)(viib) of the Act, without providing opportunity to the ld. AO under Rule 46A of the Income Tax rules, 1961 [hereinafter 'the....
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....at as per section 56(2)(viib) of the Act, the CA should have calculated the book value of shares after considering the liabilities and in that case the book value of such shares would have been zero. The ld. AO thereafter recorded that the CA has not done his job ethically and the assessee has evaded huge tax by not considering the premium as income u/s 56(2)(viib) of the Act. Accordingly, the ld. AO stated that the premium received at Rs.45 per share of Rs.8,93,58,300 is added as income under section 56(2)(viib) of the Act in the assessment framed under section 143(3) of the Act dated 13.12.2018. 05. In the appellate proceedings, the ld. CIT (A) partly allowed the appeal of the assessee after taking into account the submission and conte....
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.... share The AO rejected the valuation certificate stating that "2. It is seen though the valuation has been claimed to have made as per net asset value method but the liability has NOT been considered to find out the net asset value." The AO further observed as under:- "2.1 From the return filed for the AY2015- 16 it is seen that there are liability as under as on 31/03/2015:- Other long term liabilities Rs Trade payables 35,854/- Others 10,91,85,241/- Total 10,92,21,095/- Finally, the AO held as that :- "2.6 Hence, in continuation of para 2.2, 2.3 and 2.4 above, as per section 56 (2)(viib) the C A should have calculated the book value of such shares after considering the l....
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....it Report of M/s Kaushalya Infrastructure Development Corporation Pvt. Ltd was also readily available before the AO. It was also observed from the assessment records in the case of M/s Kaushalya Nirman Pvt. Ltd that in response to notice u/s 133(6) M/s Kaushalya Infrastructure Development Corporation Pvt. Ltd had responded and submitted relevant documents like the annual report for the relevant year. In any case no doubts have been raised by the AO regarding the said liability as well as the assets of the appellant company. Under Rule 11UA (as then applicable), the Fair Market Value is arrived at by deducting the Book Value of Liabilities from Book Value of Assets. It is needless to mention that in any case, the Book Value of Asset....
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....efore the AO, i.e ITR and copies of the balance sheet forming part of the Tax Audit Report, the FMV calculation was nevertheless correctly demonstrated in the 11UA certificate, since the FMV was arrived by the valuer by dividing the net worth (which is equal to book value of assets less book value of liabilities) by No. of Shares, there was no need to further deduct liabilities from the net worth and that the FMV arrived by the valuer is same as FMV as per method prescribed under Rule 11UA. So, the FMV of Rs. 54.97 per share as arrived by the valuer is liable to be accepted. However, as the shares have been issued by the assessee company at Rs. 55/- per share as against the FMV of Rs. 54.97 per share and no explanation is submitted....