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
viib) was there in the statute nor Rule 11U & 11UA was
prescribed. Apart from that, assessee has given detailed submission ... company, one which is provided in the rules, i.e., 11U & 11UA
and other one is residuary method which provides assistance to
the assessee
submitted that the Chartered Accountant, in his valuation
report prepared under Rule 11UA mentioned that for valuation of preference
shares, he adopted a model similar ... analogy as discounted cash flow method. Assessee further, stated
that the Rule 11UA of the Income Tax Rules prescribes NAV or DCF method
specifically
Renewable Energy Pvt. Ltd.
Method as per sub rule (2) of Rule 11UA in order to determine the
Fair Market Value of the equity shares ... particularly invited to Section 56(2) (viib)
read together with Rule 11UA of the Income Tax Rules and is
reproduced hereunder:
[(viib) where a company
that section 56 of the
I.T Act r.w.s. Rule 11UA provides for the valuation of shares and
according to the company ... cause notice to the assessee as to why the provisions of
Rule 11UA(2)(a) should not be adopted for calculating the market
value
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
appellant that the
computation provisions as specified in rule 11U and 11UA
will fail in the case of the appellant, if the provisions of
section ... market value of unquoted equity
shares under Rule 11U read with Rule 11UA(2) of the
Income-tax Rules, 1962, for the reasons which
valuation in accordance with any of
the method prescribed under Rule 11UA and made valuation of the shares
based upon audited balance sheet ... VSPL at the Fair Market Value (FMV) arrived at as
per Rule 11UA of the Income-tax Rules, 1962 ('IT Rules') which
viia) r/w Rule- 11UA.
2.1 That under the facts and circumstances, both the lower
authorities exceeded the scope of this limited scrutiny asstt ... examination towards applicability of sec.56
(2) (viia) r/w Rule-11UA against examination correctly to be
done only
