Allowing the appeal of the assesse the Tribunal held that ; on the plain reading of above Rule, it is revealed that while valuing the shares the book value of the assets and liabilities declared by the TEPL should be taken into consideration. There is no whisper under the provision of 11UA of the Rules to refer the fair market value of the land as taken by the Assessing Officer as applicable to the year under consideration. Therefore, we are of the view that the share price calculated by the assessee of TEPL for Rs. 5 per shares has been determined in accordance with the provision of Rule 11UA. ( ITA No. 6964 and 722/Del/2017, dt. 07.03.2018)(AY. 2014-15)
Minda SM Tecnocast Pvt. Ltd. v. ACIT ( 2018) 170 ITD 12 (Delhi)(Trib) , www.itatonline.org
S. 56 : Income from other sources -Under valuation of shares -The “fair market value” of shares acquired has to be determined by the taking the book values of the underlying assets and not their market values [S. 56(2)(viia) R.11UA ]