The assessee issued non-convertible redeemable preference shares to its holding company. At rate of Rs. 500 per preference share against the face value of Rs. 10 per share. The shares so issued were redeemable at the price of Rs. 750 per share after a period of five years.Assessing Officer worked out value of shares at Rs. 38 per share. Accordingly, the Assessing Officer added differential share premium to assessee’s taxable income .CIT(A) deleted the  addition. On appeal by the revenue the Tribunal held that, equity shares and preference shares stand on different footing and thus, net asset value method could not be used in case of preference shares to compute excess share premium charged on those shares so as to make addition  as cash credits. (AY. 2011-12)