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2018 (3) TMI 882 - AT - Income TaxAdditions u/s 56(2)(viib) r.w.r 11UA on account of undervaluation of shares - fair market value - whether the land shown by the TEPL should be taken as per the book value or as per the market value while valuing its shares? - FMV adoption - Held that:- While valuing the shares the book value of the assets and liabilities declared by the TEPL should be taken into consideration. There is no whisper under the provision of 11UA of the Rules to refer the fair market value of the land as taken by the Assessing Officer as applicable to the year under consideration. Therefore, we are of the view that the share price calculated by the assessee of TEPL for ₹ 5 per shares has been determined in accordance with the provision of Rule 11UA. Therefore, we have no hesitation in reversing the order of the lower authorities. Hence, the grounds of appeal of the assessee are allowed.
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