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2021 (7) TMI 96 - AT - Income TaxAddition u/s. 56(2)(vii)(b) - difference in the value of shares transferred by the assessee company to its holding company, pursuant to a scheme approved by the Hon’ble Jurisdicational High Court - Shares issued at premium - wholly owned subsidiary company issued shares to its Holding Company in consideration of transfer of assets and liabilities of a division to it by the holding company at a value determined under the Scheme of Arrangement duly approved by the learned High Court of Bombay - CIT-A rejected assessee’s contention that transfer in pursuant to Hon’ble High Court order effective from a appointed ate, which is the basis of valuation and contention of 5% tolerance - HELD THAT:- it is noted that the scheme was approved by the Hon’ble High Curt on 01/08/2014 without any variance in the appointed date. The appointed date as per the scheme approved by the Hon’ble High Court was 01/04/2013 or such other date as the Hon’ble High Court may direct or approve. The Hon’ble High Court order while approving the scheme did not direct otherwise regarding the appointed date. Hence, the appointed date of the scheme approved by the High Court is 01/04/2013. As scheme approved by the Hon’ble High Court provided an appointed date to be 01/04/2013 or any other date directed by Hon’ble High Court while accepting the scheme Hon’ble High Court has not directed any change in appointed date, we are of the considered opinion, the appointed date is 01/04/2013 and hence, the value considered by the assessee, which is nearer to the date is appropriate. The valuation date taken by the AO is not in accordance with the appointed date approved by Hon’ble High Court and in this view of the matter appointed date taken and the valuation done by the AO is incorrect. Hence, we do not find any infirmity in value taken by the assessee as per the scheme approved by the Hon’ble High Court and appointed date therein. Hence, the addition made is directed to be deleted. Appeal by the assessee stands allowed.
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