The assessee had valued its shares according to the valuation certificate issued by a chartered accountant showing the issue of shares at fair market value and their computation in accordance with rule 11UA(a). However, this was rejected by the Assessing Officer ignoring the various assets shown by the assessee in the balance-sheet such as cash and cash equivalent, and short-term loans and advances. The Assessing Officer did not apply the formula provided in rule 11UA nor made any attempt to compute the value of shares in accordance with that rule. Moreover, he found no fault in the method applied by the assessee and made the addition purely on presumptions and surmises. Such action of the lower authorities was unsustainable. The order of the Commissioner (Appeals) was set aside and the Assessing Officer was directed to delete the addition. (AY.2015-16)