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2023 (10) TMI 1197 - AT - Income TaxAddition u/s 56 (2)(viib) - difference of issue price and fair market value of shares - rounding off of share prices - HELD THAT:- We find that the assessee has not cited any decision of any court where rounding off has been accepted in the matter of section 56(2)(viib). On the other hand, DR from revenue side has relied upon two decisions of ITAT where it is clearly held that rounding off of even one rupee is not allowed. DR is also very justified in pleading that if the rounding off is allowed in present case on seeing the low quantum of addition, one day it may lead to a huge tax loss to department in a big sized issue of shares. We also take note that the assessee has himself filed a valuation certificate before AO and accepted fair market value at Rs. 19.23 per share, hence the assessee does not have any dispute, quarrel or grievance qua the fair market value. Therefore, AO has rightly arrived at the difference by finding difference of issue price and fair market value and thereby made addition. We have no reason to upset the addition made by AO which is in terms of section 56(2)(viib) the same is hereby upheld. The assessee fails in this appeal.
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