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2022 (9) TMI 868 - ITAT CHANDIGARHAddition u/s 56(2)(viib) - excess value received by the assessee company in terms of the Fair Market Value (FMV) - method of valuation and the assessee’s issuance of unquoted shares - ‘Net Asset Method’ as adopted by the assessee on the basis of the Stamp Duty Valuation - HELD THAT:- It is a fact on record that the assessee has furnished the valuation on the basis of ‘Discounted Cash Flow Method’ and on the basis of the ‘Net Asset Method’ by adopting the stamp duty valuation of the immovable property as on 15.03.2014, for which, necessary evidences have been furnished but the AO and CIT (A) are of the view that the book value of the shares has to be adopted which comes to Rs. 101.62/- per share against the value of Rs. 110/- per share and which is less than the value as per ‘Net Asset Method’ and the value as per the ‘Discounted Cash Flow Method’. CIT (A) have not been able to find any fault in the ‘Discounted Cash Flow Method’ and for the ‘Net Asset Method’, though, the Amendment came from Finance Act, 2017 for adopting the stamp duty valuation but since, it is curative and beneficial provision, it has to be given retrospective effect. We hold that the ‘Net Asset Method’ as adopted by the assessee on the basis of the Stamp Duty Valuation is in order, being beneficial provision and covered by the judgment in the case of Shiv Pal Singh Chaudhary [2018 (7) TMI 1850 - PUNJAB & HARYANA HIGH COURT] and further in the case of Kolkata Export Co. [2018 (5) TMI 356 - SUPREME COURT] - We further opine that even the valuation by the ‘Discounted Cash Flow Method’ is in order - Decided in favour of assessee.
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