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2018 (7) TMI 121 - AT - Income TaxUnexplained credits u/s 68 - unexplained credits - share premium account - Held that:- Assessee filed a copy of valuation of shares done by the same CA dated 16.02.2007 in which the same auditor has valued the shares as per discounted cash flow method and arrived at the fair value per share at ₹ 154 in support of its stand. Thus, we now have three different valuations being ₹ 23 per share by Net Asset Method, ₹ 48 per share on the basis of Earnings Capitalisation Method and ₹ 154 per share as per discounted cash flow method. The assessee transferred the shares at ₹ 176 per share including the premium. Thus, the assessee has adopted a figure unsupported by any of the valuations also. It is also not known as to which valuation have been produced before the AO. However, it is noticed that neither the AO nor the assessee has applied the prescribed methods for determination of the fair value of the unquoted shares of the assessee company. We deem it fit to remit this issue back to the AO for a fresh examination. Since, the assessee’s shares are not quoted, the AO would examine whether, the valuation of shares done by the assessee is in accordance with the law/rule and proceed to determine the correct value of share and income after affording adequate opportunity to the assessee. The assessee shall place all the materials in its support before the AO and comply to the AO’s requirements as per law. - Decided in favour of assessee for statistical purposes.
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