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2018 (2) TMI 1274 - AT - Income TaxAddition u/s 56(2)(vii)(b) r.w.r. 11UA of the IT Rule, in respect of the equity shares issued by the assessee company - Held that:- In view of the statutory provisions giving options to assessee to adopt any of the methods which can be compared with the Net Asset Value Method and the AO shall adopt the value whichever is higher. In the case of the assessee the Fair Market Value determined as per the discounted cash flow method at ₹ 54.98 per share which is higher than the valuation adopted by the AO as per the Net Asset Value at ₹ 26.69 per share. Therefore, the share allotted at ₹ 40 per share is within the fair market value as determined by adopting the discounted cash flow method. The Assessing Officer has not found any serious defect in the facts and details used in determining the fair market value under discounted cash flow method. Hence, we do not find any error or illegality in the impugned order of the Ld. CIT(A) qua this issue. TDS u/s 194C - Disallowance u/s 40(a)(ia) - non deduction of tds on handling charges - payment in question to the shipping agents of Non-Residents ship owners - Held that:- as per the CBDT Circular No. 723 dated 19/09/1995 payment made to the shipping agents of Non-Resident ship owners does not require deduction of tax at source. We further note that the Director International Taxation vide Certificate dated 23/06/2011 and 28/03/2013 respectively granted the exemption to the Non-Resident ship owners in question from deduction of tax at source. The assessee filed these certificates which are placed at page no. 13 and 14 of the paper book. Therefore, when the Department has already granted the exemption certificate to the Non- Resident ship owners then there is no obligation on the assessee to deduct tax at source in respect of the payment made to the shipping agents of these Non-Resident ship owners. Claim of entry tax disallowed on the ground that the assessee has not furnished any proof of payment - Held that:- We find that the E-challan dated 26/4/14 for sum of ₹ 1,37,635/-contains the details of assessee i.e. its name as well as address. The assessee has clarified that this amount of ₹ 1,37,635/- includes ₹ 1,35,313/- as entry tax and balance as interest. The AO has disallowed this amount for want of proof of payment whereas the assessee had produced this e-Challan dated 26/04/2014 having all the details. Accordingly, in view of the fact that, the e-Challan dated 26/4/2014 contains all relevant details including name of the assessee the AO is directed to verify details of the e-Challan and then allow the claims made on this account.
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