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TMI Blog2022 (10) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... of the property. Considering the facts of the case in totality in the light of the relevant provisions of the Act we do not find any reason to interfere with the findings of the CIT(A). The appeal filed by the revenue is dismissed. - ITA No. 885/Del/2020 - - - Dated:- 21-9-2022 - SH. N. K. BILLAIYA , ACCOUNTANT MEMBER And SH. ANUBHAV SHARMA , JUDICIAL MEMBER Appellant Sh. Jeetendra Chand , Sr DR Respondent Sh. Sushil Wadhwa , CA ORDER Per N. K. Billaiya , AM This appeal by the revenue is preferred against the order of the CIT(A)-32, New Delhi dated 30.12.2019 for A.Y. 2016-17. 2. The solitary grievance of the revenue is that the CIT(A) erred in deleting the addition of Rs. 29562912/- on account of difference i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holders and the AO has not cited any reason for rejection of valuation report for FMV of the property. It was further brought to the notice of the CIT(A) that the AO has not given any reason for the adoption of circle rates of land for valuation of property. 5. After considering the facts and the submissions the CIT(A) observed as under:- 6.1.3 I do not find the action of the Assessing Officer justified because the valuation of the land was raised toy the appellant on the basis of market value for the purpose of estimating the premium which the shares of the company could fetch. The appellant submitted that the fair market value of the land was more than the book value as well as the circle rate and the land had intrinsic potential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... higher than the value estimated on the basis of circle rate. The assessing officer himself given permission for the sale of the same property at a price which is much higher than the circle rate, that in itself proves that the intrinsic potential of the property for fetching higher price was more than the circle rate. In the result the value of the share premium of the company should go high. There remains no reason to the value of share premium baaed or the value of the property estimated on the basis of circle rate. Rather it should be on the basis of intrinsic potential of the property for which it would fetch higher price depending upon the location, use, surroundings etc. In this regard, reliance is placed on the decision of Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) as may be determined in accordance with such method as may be prescribed: or (ii) as may be substantiated by the company to the satisfaction of the Assessing Officer, based on the value. On the date of Issue of shares. of its assets, including intangible assets being goodwill, know-how. patents, copyrights, trademarks, licence, franchises or any other business or commercial rights of similar nature, whichever is higher. 6.1.5 Thus according to Explanation (a) the fair market value of the shares shall be based on (i) the value determined under Rule 11UA or [ii] fair market value of the underlying assets, whichever is higher. Thus, the AO was required to adopt the fair market value of the property as provided by the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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