Shares price was determined as per R.11UA Book value of assets and liabilities declared by company at Rs 5 per share. AO determined fair market value at Rs 45.72 per share and made addition of Rs 40.72 per share as income from other sources. Allowing the appeal of the assessee the Tribunal held that, there is nothing under the provision of rule 11UA to refer to fair market value of the land as taken by the Assessing Officer as applicable to the year 2014-15. Therefore, the share price calculated by the assessee for Rs.5 per share had been directed to be accepted. (AY. 2014-15)
Minda S M Technocast P. Ltd. v. ACIT (2018) 65 ITR 84 (SN) (Delhi) (Trib.)
S. 56 : Income from other sources–Fair market value–Shares price was determined as per R.11UA Book value of assets and liabilities declared by company at Rs 5 per share-AO determined at Rs.45.72 per share and made addition of Rs 40.72 per share as income from other sources- Tribunal held that addition made by the AO was held to be not justified. [S. 56(2)(viia), R.11UA]