Held that valuation date means, date on which property or consideration, as case may be, was received by assessee which in instant case was date on which shares were allotted. Accordingly the book value of liability shown in balance sheet has to be reduced for purpose of valuation and determination of FMV of unquoted equity shares. Accordingly the additions made by Assessing Officer is deleted. (AY. 2011-12)
ITO v. Mystical Infaratech (P.) Ltd. (2022) 197 ITD 794 (Mum.) (Trib.)
S. 56 : Income from other sources-Valuation of shares-Book value of liability shown in balance sheet has to be reduced for purpose of valuation and determination of FMV of unquoted equity shares. [Rule, 11UA]