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2023 (10) TMI 85 - AT - Income TaxAddition u/s. 56(2)(viib) - share premium received by the appellant company - Determination of fair market value - Premium is excessive or not? - HELD THAT:- We do not find any reason to interfere with the order passed by the authorities below in not accepting the valuation report so prepared by the CA in regard to the preferential share available to the assessee keeping in view the provisions of section 56(2)(viib) r.w.Rule 11UA and according to us, the value of preferential share is rightly taken as the value of the share at which the company should have received the preference share capital including the premium. Thus having regard to the facts and circumstances of the case, the finding of the authorities below to this effect that the share premium received by the company is in excess of fair market value of the share, the addition thus made u/s. 56(2)(viib) of the Act is found to be just and proper particularly in view of the ratio laid down in case of M/s. Agro Portfolio Pvt. Ltd. vs. ITO [2018 (5) TMI 1088 - ITAT DELHI]. The order passed by the authorities below is found to be without any ambiguity and thus, upheld. The assessee’s appeal is therefore found to be devoid of any merit and therefore dismissed.
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