9911796707
TMI Blog2022 (10) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee company is under taking construction of dispensary/hospital at Gurgaon. During the year under consideration the assessee introduced share capital/share premium in respect of total number of shares allotted at 152816 with face value of Rs. 1428160/- and premium of Rs. 69979840/-. The share premium was @ 490 per share. During the course of the scrutiny assessment proceedings and on perusal of the financial statements the AO learned that the NAV of shares was Rs. 10 as per rule 11UA of the IT Rules as per book value of assets and liabilities as on 31.03.2015. Accordingly the AO was of the opinion that the total consideration as per NAV should be Rs. 1428160/- and the AO formed a belief that the assessee company has received excess amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ium based on the marketability Moreover, the share premium has been introduced by the directors themselves indicating the bonafide of the transaction. Therefore, the AG was not justified in adjusting the fair market value of the land by adopting circle rate, thereby reducing the share premium. It is known fact that the fair market value of immovable property is generally higher than the circle rate. The value of the property as valued by the registered valuer should not be ignored by the assessing officer without making due verifications. The AO has taken the circle rate at the rate of Rs. 30,000/- per SqYd against the rate adopted by the registered valuer at Rs. 47,000/- per Sq Yd plus construction cost on. the basis of prevailing market r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so been relied upon by the appellant. The relevant extract are reproduced as under: "The market value of Land prevailing at the time of issue of shares requires to be substituted which value is duly supported by the valuation report obtained in this regard. Such valuation report has not beet successfully controverted by revenue...... The Intrinsic valuation of the land as sought to be demonstrated by the assesses was required to be looked into to give effect to the explanation a below the section 56(2)(v)(b) of the Act. The manner in which the assessee was required to run its business is totally within the domain of the assessee and has no bearing an application of section 56(2)(vi)(b). 6.1.4 The facts of the above case are similar to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant which as a result work out the share premium as declared by the appellant at Rs. 490/- per share. Accordingly, the addition made by the AO would be deleted. The ground of appeal is allowed and AO is directed to delete the addition of Rs. 2,93,23,400/-. 6. Before us the DR strongly supported the findings of the AO but could not point out any factual error in the findings of the CIT(A) (supra). 7. We have carefully perused the orders of the CIT(A) viz-a-viz the assessment order. There is no dispute that the AO has not given any valid reason for discarding valuation report of a registered valuer filed by the assessee. It is equally true that as per explanation a to section 56 (2)(viib) of the Act it has been specifically pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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