TMI Blog2016 (8) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 2013-14 when the assessee transferred the same. Due to time gap, the fluctuation in the market rate and value of capital asset of the company have to be taken into consideration for the purpose of valuing the shares under DCF method. Therefore, the valuation made for the assessment year 2007-08 cannot be the same for assessment year 2013-14. Since the Assessing Officer has followed DCF method, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly confirmed the order of the Assessing Officer. Reopening of assessment - Held that:- Even though no original assessment was made, for the purpose of assessing the taxable income, the Assessing Officer can always reopen the assessment under Section 147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 10.32 per share. However, the Assessing Officer estimated the valuation at ₹ 36.31 per share. Referring to the order of this Tribunal dated 12.11.2013 in I.T.A. No.17(Mds)/2012 in M/s VIHI, LLC, v. Addl DIT (International Taxation) [2014] 62 SOT 25/42 taxmann.com 304 (Chennai - Trib) the Ld.counsel submitted that VIHI is also one of the co-transferors. In that case, the Tribunal accepted the valuation made by the assessee at ₹ 10.32 per share. Therefore, the CIT(Appeals) ought to have followed the order of this Tribunal in VIHI, LLC (supra). 4. The Ld. counsel for the assessee further submitted that the Transfer Pricing Officer by order dated 29.10.2010 in M/s Visteon International Holdings Inc, held that the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of valuation, had determined the value of 7366765 shares of Visteon Powertrain Control Systems India Pvt. Ltd. at ₹ 81,15,78,422/-. In other words, the Transfer Pricing Officer determined the value of shares by following the cash discount method at ₹ 36.31 per share. According to the Ld. D.R., the average value of share, as per Chartered Accountant's valuation was ₹ 22.50 per share as on 31.03.2007. Despite this valuation, according to the Ld. D.R., the assessee disclosed the sale at ₹ 10.32 per share. According to the Ld. D.R., this is underestimation of sale consideration. 6. According to the Ld. D.R., the sale of shares by the assessee resulted in capital gain, therefore, the assessee is liable to pay the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he shares of Visteon Powertrain Control Systems India Pvt. Ltd. to M/s Visteon International Holdings Singapore Pte Ltd. and to M/s Visteon International Holdings Mauritius Ltd. for ₹ 10.32 per share. The assessee has obtained valuation certificate from M/s Delloite Haskins Sells, Chartered Accountants. However, the Assessing Officer determined the arm's length price of the value of shares at ₹ 36.31 per share. This Tribunal after examining the facts of the case, ultimately found that the computation of arm's length price shall be made in DCF method. 9. In fact, the order of this Tribunal in I.T.A. No.17/Mds/2012 relates to assessment year 2007-08. The issue under consideration is for assessment year 2013-14. The CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation made for the assessment year 2007-08 cannot be the same for assessment year 2013-14. Since the Assessing Officer has followed DCF method, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly confirmed the order of the Assessing Officer. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. 11. The assessee has also raised an issue with regard to reopening of assessment. 12. As seen from the grounds of appeal, the grievance of the assessee appears to be that no original assessment was made, therefore, the assessment cannot be reopened. This Tribunal is of the considered opinion that even though no original assessment was made, for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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