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2023 (1) TMI 533 - AT - Income TaxAddition made u/s 56(2)(viib) - excess premium allegedly received by the assessee, made on the ground that the assessee company did not have financial worth or capacity to issue shares at premium of Rs.100.90 per shares - HELD THAT:- CIT(A) has given valid reason for rejecting both the valuations of the shares at Rs.1137.27 per share and at Rs.122.64 per share, pointing out that valuation at Rs.1137.22 per share, done on the basis of discounted cash flow method was based on projected profits of the assessee for the subsequent year which projections did not have any solid basis. There is nothing before us to counter this finding of the ld.CIT(A). Therefore, his order rejecting the valuation of shares at Rs.1137.27 per share is found to be in order, and upheld. With regard to the rejection of valuation of shares at Rs.122.64 per share, the ld.CIT(A) found that though the valuation was done on the basis of book value, the land was valued after indexation ,which he noted was not as per the prescribed method. There is nothing before us to controvert this finding of the ld.CIT(A). Therefore, even rejection of the valuation done by the assessee at Rs.122.64 per share calls for no interference. No merit in the grounds raised by the assessee against order of the ld.CIT(A) upholding the addition made under section 56(2)(viib) - Decided against assessee.
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