share
as decided by AO as per valuation method provided in Rule
11UA(2)(a) without appreciating the full facts and
circumstances of the case ... considered the
second method as provided in Rule 11UA(2)(b) as ascertained
ITA No.884/JP/2016
M/s. Rameshwaram Strong Glass
Section 56(2)(vii)(c) (ii) and in terms of Rule 11UA of the Income Tax
Rules is plainly erroneous and cannot be the basis ... application of Section 56(2)(vii)(c)(ii) read with Rule 11UA to the present case is
deeply flawed for multifarious reasons. It is stated
learned CIT(A) failed to appreciate that:
• Rule 11UA(2) of the Income-tax Rules, 1962 ['Rules'] has
explicitly conferred an option upon ... methods either Net Asset Value ['NAV'] method
under Rule 11UA(2)(a) of the Rules or Discounted Cash
Flow ['DCF'] method
instead of fair market value @ Rs. 234.82/- per
share under rule 11UA as claimed and that too by
recording incorrect facts and findings and without ... Hyderabad (2016) 68
Taxman.com 29 (Hyd. Tri.)
As per rule 11UA the computation works out to Rs.
234.82 per share. Thus the fair market
erred in
interpreting and applying the Rules 11 U and 11UA of Income Tax
Rules, 1962. The action of ld. CIT (A) is illegal, unjustified ... fair market value of shares as per the method
prescribed under Rule 11UA of IT Rules for the purpose of section 56(2)(viib
provisions of section 56(viib) of the Act and Rule 11UA (2)
(b) and held that the assessee had liberty to exercise the option ... valuation report. Finally, he held that as per the
provisions of Rule 11UA of the Rules the selection of the method for valuation of shares
which was
more than the book value as per r.w.Rule 11UA was seen by the Dy. C.I.T -
Circle ... compliance of
the provisions of sec. 56 (2)(viia) r.w. Rule 11UA (1) (c) (b) and therefore the
said order was not erroneous
shares. The assessee claimed to have valued the shares as
per Rule 11UA of the Income-tax Rules, 1962 (in short 'the
Rules ... referred the section 56(2)(viia) of the Act
read with Rule 11UA of the Rules. Thus, as per the AO with
difference
decided the issue of
valuation by considering the methods prescribed under Rule 11UA of the
Income Tax Rules, 1962 (in short the Rules) whereas ... valuation, has considered the valuation as per
the prescribed method under Rule 11UA of the Rules which are prescribed
in terms of Clause
resort
to determination of value of shares as per Rule 11UA of the Income-
tax Rules, 1962.
6. The CIT (A) erred in upholding ... resort
to determination of value of shares as per Rule 11UA of the Income-
tax Rules, 1962.
6. The Appellant craves leave to add, amend
