The Commissioner of Income Tax (CIT) directed the Assessing Officer (AO) to compute the assessee's...

The Commissioner of Income Tax (CIT) directed the Assessing Officer (AO) to compute the assessee's income by adding the difference in valuation of shares u/s 56(2)(viib). The CIT held that the valuation report submitted by the assessee was not found in the assessment folders. The assessee's counsel argued that the valuation report must have been misplaced by the Department, and the assessee should not face hardship for the same. The valuation was done based on the balance sheet as of 30/06/2013, i.e., the book value, and not the discounted free cash flow method. The AO was satisfied with the premium of Rs. 310 per share charged by the assessee on allotment of shares to family members, and the entire amount was received in October 2013, afte..... .....

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