| Question And Answer | |
|---|---|
| Subject: | 11UA |
| Category: | Income-Tax |
| Querist: | bs |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Valuation of preference shares |
| Date: | May 7, 2023 |
can preference share be valued at NAV ?
Shares other than equity shares have to be valued as per Rule 11UA(1)(c)(c) of the Income-tax Rules, 1962, which does not specify any specific method.
In the case of Ginni Global (P.) Ltd. v. ACIT [2019] 106 taxmann.com 270 (Jaipur – Trib.) it was held that the matter was to be remanded back to Assessing Officer with a direction to determine the value of preference shares as per NAV method as on the date of issuance of such preference shares.
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