Unquoted share purchase below FMV and disputed net-asset valuation; s.56(2)(viia) addition remanded, receivable addition deleted

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....On addition under s.56(2)(viia) for purchase of unquoted shares below alleged FMV, the assessee's valuation reduced net assets by items claimed to have no realisable value; since neither the AO nor the first appellate authority verified this factual claim, the addition could not be sustained and the matter was remanded to the AO for de novo determination. On addition for unexplained receipts reflected as trade receivables/sundry debtors, the AO's stance that all business transactions were bogus was inconsistent with simultaneously treating purchases/sales as genuine; further, even if the receivable was fictitious, it was not taxable in the relevant year absent adverse material on current-year share sales, so the addition was deleted. The assessee's objection that s.56(2)(viia) exceeded limited scrutiny was rejected as waived by conduct. - ITAT....