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2019 (2) TMI 1470 - AT - Income TaxAddition u/s. 56 (2) (viib) - allotment of shares less then fair market value - Valuation of share premium received- Limited Scrutiny selection as Large share premium received during the year and Low income in comparison to high loans/ advances/ investment in shares - HELD THAT:- It is true that the provision refers to consideration for issue of shares received in any previous year and it is equally true that ₹ 4.03 crores was received in A. Y. 2012-13 and ₹ 40 lacs was received in A. Y. 2013-14 but the fact of the matter is that the entire share allotment was done during the year under consideration, therefore, it cannot be said that the assessee was not liable to justify it share premium supported by the valuation report as mentioned under Rule 11 U and 11 UA. The valuation report which was the counsel sought to file before us should have been filed before the AO so that the same can be examined within the purview of rules 11 U and 11 UA. We restore this issue to the files of the Assessing Officer. The assessee is directed to justify the share premium as per provisions of law and as per Rule 11 U and 11 UA of the IT Rules. As mentioned elsewhere the part of the share application was received in earlier assessment years but since in those assessment years shares were not allotted, therefore, the share premium could not have been examined by the Assessing Officer u/s 56 (2) (viib). Since the entire transaction has crystallized during the year under consideration which also includes the share premium of ₹ 790 per share needs to be examined during the year under consideration only. AO is directed to examine the justification of share premium as per the procedure prescribed under Rule 11 U and 11 UA of the IT Rules and decide the issue afresh after giving a reasonable opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purpose.
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