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2021 (11) TMI 357 - AT - Income TaxIncome from other sources - treating the amount of share premium as income under the provisions of section 56(2)(viib) - assessee alternatively also contended that the provision of section 56(2)(viib) was brought in the Act with the specific objective as a measure to prevent generation and circulation of unaccounted money, however in its case all the shares were issued to the family members of group i.e. ‘Parekh family’ and all of them are regularly assessed under the provision of the Act. Thus the question of generation and circulation of unaccounted money does not arises - whether the AO can disturb the valuation of shares determined by the qualified chartered accountant? - HELD THAT:- There are series of judgments which says that the valuation of shares is being a technical subject, the AO cannot reject the same. In holding so we draw support and guidance from the judgment in case of Vodafone M-Pesa Ltd [2018 (3) TMI 530 - BOMBAY HIGH COURT]. We find that it was the duty of the assessee to furnish the necessary details based on which the fair market value of the shares was prepared. But in the case before us we find that the assessee has not filed the project report based on which the valuation of shares was determined by the qualified chartered accountant. However, the same has been filed before us with the prayer to restore the issue to the file of the AO for fresh adjudication. To our mind, it is necessary for the authorities below to consider the impugned project report for determining the market value of the shares so that the amount of premium could be justified. We also note that the alternate contention raised by the assessee for determining the fair value of shares on the basis of the method as provided under clause (a)(ii) of explanation (a) to section 56(2)(viib) of the Act subject to the satisfaction of the AO, is a legal contention - we admit the same and restore the issue to the file of the AO for making the denovo assessment - Ground of appeal of the assessee is allowed for the statistical purposes.
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