The CIT (A) has upheld that order of the AO\u00a0 wherein the AO held that \u00a0\u00a0the share premium received from the shareholders on issue of equity shares and preference shares as income for the year under consideration \u00a0is taxable u\/s. 56(2)(viib) of the Income-tax Act. \u00a0The issue before the Appellate Tribunal was whether the the premium of Rs. 3,96,54,531\/- received from shareholders via-a-vis issue of equity shares and preference shares as income u\/s. 56(2)(viib) of the Income-tax Act, 1961. \u00a0Allowing the appeal of the assessee\u00a0 the Tribunal held that\u00a0 , the assessee has the choice to choose a prescribed method for ascertaining the market value of the shares transferred. If the assessee has chosen one method of valuation provided under Rule 11UA (i.e. DCF method), the AO has no power or jurisdiction to change that method to another method. \u00a0Addition is deleted .(ITA No.3955\/Mum\/2018 dt .28 -07 -2020) (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56: Income from other sources -Consideration for issue of shares- Excess of the face value of shares- Market value \u2013 Method of valuation- The Assessee has the choice to choose a prescribed method for ascertaining the market value of the shares transferred- If the assessee has chosen one method of valuation provided under Rule 11UA (i.e. DCF method), the AO has no power or jurisdiction to change that method to another method- Addition is deleted . [ S.56(2) (viib) , R.11UA ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11950","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-36K","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=11950"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11950\/revisions"}],"predecessor-version":[{"id":13537,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/11950\/revisions\/13537"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=11950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=11950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=11950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}