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2018 (6) TMI 1114 - AT - Income TaxAddition u/s 56(2)(viib) - allotment / transfer of shares - adequate consideration / Fair Market Value (FMV) - additional evidence not admitted - Held that:- There is nothing in the assessment order passed by the Assessing Officer to show that any opportunity was given by him to the assessee to exercise its option given as per Explanation (a)(ii) to section 56(2)(viib). The assessee,exercised the said option and filed the valuation of its shares based on the fair market value of its assets duly supported the valuation report prepared by the Registered Valuer. CIT(Appeals), however, did not admit the said additional evidence on the ground that it had no relevance to the issue involved in the appeal of the assessee. The assessee by relying on Explanation (a)(ii) to section 56(2)(viib), the said additional evidence was very much relevant to decide the issue relating to the addition made under section 56(2)(viib) involved in the case of the assessee and the ld. CIT(Appeals), in my opinion, was not justified in declining to admit the same. Set aside the impugned order of the CIT(Appeals) on this issue and restore the matter to the file of the Assessing Officer with a direction to decide the issue relating to the addition under section 56(2)(viib) afresh on merit after considering the valuation report filed by the assessee to substantiate its claim of higher fair market value of its shares on the date of issue of shares as per Explanation (a)(ii) - Appeal of the assessee is treated as allowed for statistical purpose
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