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TMI Blog2024 (6) TMI 1294X X X X Extracts X X X X X X X X Extracts X X X X ..... ore us. The order passed by the CIT(A) is confirmed. Addition u/s 56(2)(vii)(c) - difference in fair market value and actual consideration paid by the assessee for purchase of shares - HELD THAT:- As the assessee allotted 125000 shares of J.B. Rolling Mills @Rs.40/- per share on 31.03.2017, the fair market value of such shares comes at Rs. 48.60/- per share in terms of the provision of Section 56(2)(vii)(c) read with Section 11UA of the Act. Therefore, the difference in fair market value and the actual consideration paid for purchase of shares has been rightly added by the Learned AO and so confirmed by the First Appellate Authority which is found to be just and proper so as to warrant interference - Decided against assessee. - Shri Shami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty while dealing with the issue observed as follows: 5. Ground of appeal No.3 2.. This ground of appeal has been taken up by the appellant against the addition of Rs. 14.50,000/- made by the AO on account of unexplained credits u/s 68 of the Act. During the assessment proceedings it was observed by the AO that the appellant has received amount of Rs. 14,50,000/- from Sh. Ashok Singla in his bank account. The appellant was asked by the AO to establish identity and creditworthiness of Sh. Ashok Singla and genuineness of transaction. In response, the appellant failed to give any explanation or documentary evidence to establish identity and creditworthiness of Sh. Ashok Singla and genuineness of transaction. Thus, the addition of Rs. 14,50,000. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arket value and actual consideration paid by the assessee for purchase of shares. The observation made by Learned AO are as follows: It was observed by the AD that the appellant had invested amount of Rs 50,00,000/- in acquiring 125000 shares of JB Rolling Mills @Rs.40/- per share. The fair market value of shares as on 31.03.2017 was computed by the AO as per provisions of Bale 11UA of IT Rules, 1962 at Rs. 48.60/- per share as against allotted to the appellant at Rs. 40/- per share which resulted into Fair Market Value of 125000 shares at Rs. 60,75,000/- as against Rs. 50,00,000/-. The appellant was required by the AO to explain as to why addition of Rs. 10,75,000/- on account of difference in fair market value and actual consideration pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant has been reproduced as above. After looking into facts and circumstances of the case, it is observed that the appellant was allotted 125000 shares of M/s JB Rolling Mills @Rs.40/- per share on 31.03.2017. As per the provisions of 56(2)(vii)(c) of the Act read with rule 11UA of IT Rules, 1962, Fair Market Value of the shares comes at Rs. 48.60/-. Accordingly, there is no merit found in the submission of the appellant. Therefore, the AO was justified in making the addition of Rs 10,75,000/-under the head 'income from other sources' u/s 56(2)(vii)(c) of the Act. The addition of Rs. 10,75,000/- is hereby confirmed. Ground of appeal no.2 is hereby dismissed. 12. As the assessee allotted 125000 shares of J.B. Rolling Mil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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