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2024 (2) TMI 882 - AT - Income TaxAddition u/s 56(2)(viib) - issue of shares at premium - huge variations of the projection with that of the actual figures has been found by the AO - working of fair market value as per 11UA(2)(a) - HELD THAT:- As decided by M/s. Cinestaan Entertainment Pvt. Ltd [2021 (3) TMI 239 - DELHI HIGH COURT] when the assessee respondent has adopted a recognized method of valuation and further Revenue was unable to show that the assessee adopted a demonstrably wrong approach, or that the method of valuation was made on a wholly erroneous basis, or that it committed a mistake which goes to the root of the valuation process, interfering with the finding of the valuer by the Ld. AO, is found to be not permissible. As we find in the instant case that the assessee determined the fair market value of the unquoted equity shares following the manner and method laid down under Clause (b) of Rule 11UA(2) and particularly when no verification into the correctness of the projected figures had been made by the Ld. AO, the order impugned passed by the Ld. CIT(A) deleting the addition made by the Ld. AO is found to be just and proper so as to warrant interference. Revenue’s appeal is found to be devoid of any merit, therefore, dismissed.
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