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2022 (7) TMI 895 - AT - Income TaxAddition on account of share premium received in excess of fair market value u/s 56(2)(vii)(b) - addition by applying the provisions of Section 56(2)(viib) by rejecting the DCF method followed by the assessee and applied the fair market value for the share application money and made the addition - HELD THAT:- AO has not brought any adverse evidence or report of another expert on record and merely brushed aside the DCF method followed by the assessee. He has further given a finding that in this case the provisions of section 56(2)(viib) are not applicable as the share application money was received in the FY 2010-11. CIT(A) further noted that since there was no provision of section 56(2)(viib) in statute at the time of receiving the share application money in FY 2010-11, the said provision cannot be applied in any manner and no addition can be made invoking the said provision. To arrive to such conclusion, CIT(A) has taken support of various orders of Hon’ble Supreme Court, High Courts and Tribunal which have been reproduced in the preceding paragraph. CIT(A), therefore, held that the provisions of Section 56(2)(viib) of the Act could not be attracted on the share application money received in the FY 2010-11 i.e. prior to the insertion of the said provision and deleted the impugned addition made by the A.O. Before us, no fallacy in the findings of CIT(A) has been pointed-out by the Revenue. In such a situation, we find no reason to interfere with the order of the CIT(A). We, therefore, confirm the order of the Ld. CIT(A) on this issue and dismiss Ground of appeal No.1 of the appeal of the Revenue.
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