Valuation report by registered valuer found flawed and ...

Flawed valuation report benefits company's interest. Continuous losses lead to negative net worth. Share premium rightly taxed as income.

Case Laws Income Tax

July 5, 2024

Valuation report by registered valuer found flawed and unreliable. Adoption of rate without substantiation or comparable instances. Inconsistency in premium charged from promoters and investors for share allotment in same year. Registered valuer's report made to suit company's interest without corroborative evidence. Assessing Officer rightly calculated negative net worth due to continuous losses. Entire premium taxable as income from other sources. CIT(A)'s order set aside, Assessing Officer's order upheld. Revenue's appeal allowed.

View Source

← Previous Next →

Valuation report by registered valuer found flawed and ...

Flawed valuation report benefits company's interest. Continuous losses lead to negative net worth. Share premium rightly taxed as income.

Case Laws Income Tax

July 5, 2024

You may also like:

Restoration of name of Company - Aggrieved person is Income Tax Department - The instant application would not lie under section 252(3) of the Companies Act, 2013;...

Proposed Amendments in the Companies Act, 2013 - as per the report of the Companies Law Committee

Proposed Amendments in the Companies Rules - as per the report of the Companies Law Committee

This circular issued by the Insolvency and Bankruptcy Board of India (IBBI) introduces a Valuation Report Identification Number (VRIN) system for valuation reports...

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)....

Valuation of the fair price per equity share of the Respondent Company - low valuation of shares in the exit offer - Section 247 or other provisions of the Companies Act...

Deemed dividend u/s 2(22)(e) is not taxable in the hands of the assessee company if it is not a shareholder in the companies that extended loans. It is chargeable to tax...

Disallowance of Capital Loss on Sale of Shares - sale of shares due to the amalgamation of certain entities - The AO disallowed the loss, treating it as an artificial...

Enhancement made by the Ld. CIT(A) u/s 251(1) r.w.s. 56(2) (viib) - AO substituted fair market value determined by the assessee through his own valuation - Assessees...

Determination of value of royalty through a Valuation Report of an expert - In case, AO was not satisfied or convinced with the Valuation Report of the expert valuer,...

The ITAT considered an appeal regarding addition u/s 56(2)(viib) concerning the valuation of preference shares. The Assessee lacked a valuation report supporting the...

Advances to subsidiary company – Allowability as bad debt – the loss of advance by the assessee company to its 100% subsidiary company is to be allowed as a business loss - AT

Benefit of deduction u/s 80IA - portion of the interest attributable on the bank loan - loan not used for business purpose - Contention of the AO that this was a...

Nature of loss - capital loss or business loss - company in liquidation - assesssee claimed the same as business loss - Tribunal allowed the same as capital loss -...

Permission of Company to revise Board's Report - Corporate Social Responsibility (CSR) report - we are convinced with the reasons furnished by Petitioner to seek the...

Quick Updates: