2025 (10) TMI 152

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ct, 1961 (hereinafter called the "Act") vide his order dated 28.11.2016, on the following ground:- "The Ld. CIT(A)-9, New Delhi erred in law and on facts in sustaining the addition of Rs. 2,63,73,189/- u/s. 56(2)(vvib) of the I.T. Act, 1961." 2. Brief facts of the case are that assessee had issued shares of Rs. 10 each at a premium of Rs. 30 each at the total value of Rs. 40 each. It was noticed by the AO that the assessee had received a sum of Rs. 16,56,08,720/- for issue of 4140218 no. of shares @ Rs. 40 each. The assessee was asked by the AO to produce the valuation of shares as per Rule 11UA of the I.T. Rules as the assessee had issued the share more than the face value of share. The assessee replied vide letter dated 03.10.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... date of allotment is not getting any mention in the impugned order. Though the rule specifies that value higher of fair market value based on net asset value or discounted cash flow method be adopted to arrive at the conclusion of applying section 56(2)(viib) of the Act. In its paper book the appellant has annexed a purported valuation certification issued by one Sh. Sanjeev Rai Mehra, partner for Mehra and Sistani, Chartered Accountants (M No. 080402) indicating therein that based on net asset value method, the valuation of equity shares of Uniproducts India Limited is Rs. 67.71/- as per share as at 31.03.2013. It is noticed that the said certificate of valuation has been issued by the Chartered Accountant who happens to be authorized rep....