Assessee company was incorporated on basis of joint venture agreement between a resident company and a non-resident company . Both joint venture partners agreed to contribute project cost in ratio of 40 per cent by non-resident and 60 per cent by resident . Assessee issued shares at Rs. 60 per share to non-resident shareholder while shares to resident company were issued at Rs. 40 per share .  AO rejected said valuation of shares for reason that shares issued to resident company were at much lesser price than shares that were allotted to non-resident company .  AO also  held  that there was loss in previous assessment years, therefore, value determined by DCF Method was not correct . The AO made addition under section 56(2)(viib) of the Act . On appeal the CIT(A) deleted the addition . On appeal by Revenue  Dismissing the   appeal the Tribunal held that  the AO had fallen in error in not considering objectively facts and circumstances of case as reflected in joint ventures agreement between resident and non-resident entity which showed that project costs of assessee was to be funded in ratio of non-resident entity paying 40 per cent of project cost and resident entity paying 60 per cent of project cost  . As per the  joint ventures agreement there was difference in share price as issued to resident company and to non-resident company . Difference in amount had occurred due to difference in shares of capital contribution to project cost . Order of CIT(A) is affirmed  .Referred   Duncans Industries Ltd. v. State of UP 2000 ECR 19 (SC) ,  Cinestaan Entertainment (P.) Ltd. v. ITO ( 2019) 177 ITD 809 ( Delhi)( Trib) .( AY. 2014 -15 )