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2022 (7) TMI 1490 - AT - Income TaxAddition u/s 56(2)(viib) - share premium in excess of Fair Market Value - FMV determination - Valuation of shares - issuance of equity shares to its non-resident angel investors was by way of conversion of CCDS into equity shares - valuation of equity shares which ultimately leads to the quantification of the addition to be made u/s 56(2)(viib) in the hands of the assessee in the form of excess of aggregate consideration over and above the fair market value of the equity shares - HELD THAT:- Owing to the observations made by the ld. CIT(A) on the non-submission of MIS data and other details relevant to the valuation report placed on record, the above conclusions drawn in the case of Innoviti Payment Solutions Pvt. Ltd. [2019 (1) TMI 688 - ITAT BANGALORE] apply mutatis mutandis and we direct, both, the assessee and the ld. AO to comply with the same, for which in the conspectus of factual matrix, applicable law deliberated above, we remit the issue of valuation of shares to the file of ld. AO for the limited purpose of verification in terms of conclusions noted above so as to arrive at satisfaction on the scientific basis of valuation and rationality of assumptions adopted to build hypothesis on the valuation of shares. The assessee is also directed to make available the MIS data and all the other details of various assumptions adopted to arrive at the given valuation of equity shares issued by it. Ld. AO is also directed to analyze the data and projections which have undergone in arriving at the FMV on the basis of DCF method opted by the assessee and to come to a conclusion accordingly in terms of the applicable law. Before parting on this issue, we make it clear that we have not expressed any of our views on the correctness and completeness of the valuation report submitted by the assessee by adopting DCF method under Rule 11UA(2)(b) of the Rules so as not to impair or injure the verification process before the ld. AO. The observations made herein by us in remitting the matter back to the file of the ld. AO will also not impair or injure the case of the assessee and not cause any prejudice to the defence/explanations of the revenue. Accordingly, these two grounds are allowed for statistical purposes.
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