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TMI Blog2019 (6) TMI 1675X X X X Extracts X X X X X X X X Extracts X X X X ..... - HELD THAT:- Even the learned counsel for the assessee has not been able to point out any provision in the Act or in the Rules which permits such rounding off of the valuation to the next rupee. This makes it clear that the valuation taken by the AO at Rs. 98/- instead of Rs. 98.61 while computing the amount to be added u/s 56(2)(viib) is also not correct - therefore, direct the AO to recompute the addition u/s 56(2)(viib) by taking the of valuation at Rs. 98.61 after necessary verification.Appeal of the assessee is partly allowed. - I.T.A. No. 2517/Kol/2018 - - - Dated:- 7-6-2019 - SHRI P.M. JAGTAP, VICE PRESIDENT (KZ) For the Appellant : Shri Manish Tiwari, FCA For the Respondent : Shri Robin Choudhury, Addl. CIT, Sr. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of unquoted equity shares, as per certificate u/s 11UA and the actual sale price of the equity shares of Rs. 3,68,000/-. The AO in the assessment order has observed that the appellant has sold the equity shares at Rs. 100/- per share, however as per certificate u/s 11UA of the I.T. Act, the fair market value of unquoted equity shares is Rs. 98/- per share, hence he added the difference of Rs. 2/- per share. The total number of shares issued by the appellant company was 1,84,000 therefore he added Rs. 184000 X Rs. 2/- = Rs. 3,68,000/- back to the total income of the appellant. The AR of the appellant in his written submissions has submitted that the appellant company has fixed the issue price of shares at Rs. 100 for rounding off purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the additionally amount of Rs. 2/- has been charged on account of rounding off. It has been stated that the excess amount charged of around 2% should be ignored. No mitigating circumstances have been given in section 56(2)(viib). No safe harbour limits have been prescribed in section 56(2)(viib). It is clearly stated that the excess amount received by the assessee over the fair market value, as per Rule 11UA for the shares has to be charged to tax. As per the rule of literal interpretation when the language of the statue is clear nothing extra should be read into it. There is absolute clarity on a plain and simple reading of the said section. Hence nothing extra should be interpreted. Therefore, in this case the excess amount of Rs. 3,38 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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