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TMI Blog2022 (7) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... preting section is an exception, that too where literal rule would result in absurd construction of provision. In the instant case the provisions of section 56(2)(viib) of the Act or Rule 11UA no where provides for rounding off to nearest rupee or multiple of ten or hundred. The provisions are plain, clear and unambiguous. Thus, in the light of above observation, the impugned order is upheld and the appeal by assessee is dismissed. - ITA NO.6739/MUM/2019 & 6740/MUM/2019 - - - Dated:- 4-3-2022 - SHRI VIKAS AWASTHY, JUDICIAL MEMBER Appellant by: Shri Subodh Ratnaparkhi Respondent by: Shri T.Shankar ORDER These two appeals are by two different assessees for the assessment year 2014-15. Since, the issue involved in both these appeals are identical and the ground of appeal raised by the assessees in their respective appeals are also identical, these appeals are taken up together for adjudication and are decided by this common order. 2. The facts are narrated from the appeal in ITA No.6739/Mum/2019 for the sake of convenience, hence, the said appeal is taken as the lead case. ITA NO.6739/MUM/2019- A.Y. 2014-15: 3. This appeal by the assessee is dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liance on the decision of Tribunal in the case of DCIT vs. Jain Housing, 109 taxamann.com 428(Chennai) submitted that marginal difference of 1% should be ignored and the addition made may be deleted. 5.1 The ld.Authorized Representative of the assessee further to justify rounding off of fair market value of shares submitted that fair market value determined u/r.11UA(c) is akin to the provisions of section 288A and 288B of the Act, wherein the total income computed as well as the tax payable or refund/deduction is rounded off as per respective provisions. The ld.Authorized Representative of the assessee further draws support from the provisions of section 115VG(5) of the Act dealing with tonnage tax, wherein the provision provided for rounding off to nearest multiple of hundred. To further strengthen his submissions the ld.Authorized Representative of the assessee referred to section 79 of the Black Money (undisclosed foreign income and assets) and Imposition of Tax Act, 2015 wherein again there is provision of rounding off to the nearest multiple of hundred. The ld.Authorized Representative of the assessee asserted that the concept of rounding of to the multiple of nearest ten o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es @ Rs.3600/- per share, purportedly, by rounding off to the nearest multiple of hundred the Assessing Officer made addition of the difference in the fair market value and the value of which shares were allotted. Since, the assessee had issued 1,25,000 equity shares an addition of Rs.48,75,000/- ( i.e. 1,25,00x 39) was made under section. 56(2)(viib) of the Act 9. Before proceeding further it would be relevant to refer to the provisions of section 56(2)(viib) of the Act. The relevant extract of the same is reproduced herein below: 56(2) In particular and without prejudice to the generality of the provisions of sub-section(1), the following incomes, shall be chargeable to income-tax under the head Income from Other Sources , Xxxxxxxxxxxx Xxxxxxxxxxxx xxxxxxxxxxxx (viib): where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares On a plain reading of the section it emanate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d off of to next rupee that is Rs. 99 should be adopted for the purpose of computing the addition to be made u/s 56[2)(viib). The learned DR, on the other hand, has submitted that there is no such provision either in the Act or even in the relevant Rules to round off the valuation of shares at the next rupee. 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. 1, 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. 12. The Hon ble Apex Court has time and again held that, in a taxing statute one has to look merely at what is clearly said in the section . There is no room for any intendment. There is no concept of equity in tax law. Nothing is to be read in, nothing is to be implied. One has to look at plain language of the provisions of the section. For the purpose of construction of a taxing statute, the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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