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TMI Blog2018 (2) TMI 1274X X X X Extracts X X X X X X X X Extracts X X X X ..... following grounds against the order of Ld. CIT(A), Alwar in appeal no. 258/2016-17 dated 05-06-2017 in the case of M/s Safe Decore (P) Ltd., SP-812, E-6, Phase-III, Industrial Area, Bhiwadi, Distt. Alwar (PAN: AAFCS0374R) for the A.Y. 2014-15:- 1. On the facts and in the circumstances of the case and in law Ld. CIT(A) erred in deleting the addition of Rs. 66,55,000/- u/s 56(2)(vii)(b) r.w. Rule 11UA of the IT Rule made by the AO without appreciating the material facts of the case. 2. On the facts and circumstances of the case and in law Ld. CIT(A) erred in deleting the disallowance of the payment of handling charges/commission of Rs. 3,94,044/- made kby the AO on account of violation of the provisions of section 194C r.w.s. 40(a)(ia) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O made addition of Rs. 66,55,000/- u/s 56(2)(vii)(b) of the Act. The assessee challenged the action of the AO before the Ld. CIT(A) and contended that as per Rule 11UA of IT Rules, the Fair Market Value of unquoted equity shares shall be the value, on the allotment date, of such unquoted equity shares as determined as per method provided or Net Asset Value whichever is higher. The Ld. CIT(A) accepted the contention of the assessee and held that the shares allotted to M/s Jasmine Barter Private Limited are within the fair market value as determined under the prescribed method under Rule 11UA of the IT Rules, 1962, and accordingly the addition was deleted. 3.2 Before us the Ld. D/R has submitted that assessee has submitted the valuation by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as received in the Assessment Year 2011-12 and this provision of section 56(2)(vii)(b) has been newly inserted w.e.f. 1/4/2013. 4. We have considered the rival contentions as well as the relevant material on record. There is no dispute that the assessee has issued the shares to M/s Jasmine Pvt. Ltd., during the year under consideration. Further, the fair market value as per the provision of section 56(2)(vii)(b) has to be determined in accordance with the method prescribed under Rule 11UA of the IT Rules and as per sub-Rule (2) of Rule 11UA, discounted cash flow method is one of the prescribed method. Therefore, it is the option of the assessee to adopt any of the prescribed method under Rule 11UA(2) of the IT Rules Section 56(2)(vii)(b) r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Pvt. Ltd. and Emirates Shipping Agencies Pvt. Ltd. without deduction of tax at source as per the provisions of Section 194C of the Act. Accordingly, the AO invoked the provision of Section 40(a)(ia) of the Act and disallowed the payment of handling charges of Rs. 3,94,000/-. The Assessee challenged the action of the AO before the Ld. CIT(A) and submitted that these payments were made to the shipping agents of non-resident shipping companies of UK and UAE. As per DTAA between Indo UK and Indo UAE the said remittance is not taxable in the hands of the Non-Resident shipping companies. The assessee also relied upon CBDT Circular No. 723 dated 19.09.1995 and submitted that the payments have been made through shipping agents of Non-Resident shi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 wherein the assessee has raised the following grounds of Cross objection. "1. That the Ld. AO grossly erred in making addition of Rs. 1,35,313/- by disallowing the provision of entry tax and the Appellate Authority erred in sustaining the same. 2. That Respondent-cross objector craves liberty to raise additional ground and to modify/amend the ground of appeal at the time of hearing." 6.1 Only issue raised by the assessee is regarding disallowance of entry tax. 6.2 We have heard the Ld. AR as well as Ld. D/R and considered the relevant material on record. The Assessing Officer disallowed the claim of entry tax of Rs. 1,35,313/- on the ground that the assessee has not furnished any proof of payment. The Ld. CIT(A) has confirmed the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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