TaxTMI 
TaxTMI 
2020 (10) TMI 1083
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....terest of revenue, is opposed to law and the facts and circumstances of the case. 2. The ld. CIT(A) erred in deleting the addition of Rs. 6,40,18,500/- u/s. 56(2)(vii), the excess amount of share premium received on allotment of equity shares. 3. Whether on the facts and in circumstances of the case and in law, the ld. CIT(A) is right in accepting the additional evidence submitted during the course of appellate proceedings without giving an opportunity to the AO to examine the fresh evidences as required under Rule 46A. 4. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the ld. CIT(A) be reversed and that of the Assessing Officer be restored. 5. The appellant craves le....
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.... being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares: Provided that this clause shall not apply where the consideration for issue of shares is received- (i) by a venture capital undertaking from a venture capital company or a venture capital fund; or (ii) by a company from a class or classes of persons as may be notified by the Central Government in this behalf. Explanation.-For the purposes of this clause,- (a) the fair market value of the shares shall be the value- (i) as may be determined in accordance with such method as may be prescribed or (ii) as may be substantiated by the ....
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.... business or commercial rights of similar nature, 5. As per the Explanation to Sec.56(2)(viib) of the Act, fair market value (FMV) is prescribed under the Rules. Besides the above, the AO also noticed that the CA in valuing the shares had adopted Discounted Cash Flow (DCF) method. According to the Assessee the DCF method was a permitted method of valuation in terms of Rule 11UA(2)(b) of the Income Tax Rules, 1962 (Rules) read with Sec.56(2)(viib) of the Act. The Assessing Officer did not accept the explanations of the Assessee and he was of the view that the projection made in the working as per the DCF method was provided by the Assessee company and not based on any independent analysis. The projection was irrational and did not have any ....