Perquisite and TDS will be computed based on fair market value determined by merchant banker

ACIT (TDS)-2(2) Vs Sula Vineyards Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai held that as per rule 3(8)(iii) fair market value of any equity shares on the date of exercising option by the employee shall be determined by a merchant banker. Accordingly, quantum of perquisite and TDS liability will be worked on the said basis. Facts- The issue raised in present appeal by the Revenue relates to short-deduction of tax on perquisites to Mr. Rajeev Samant, the then director of the assessee company. According to AO, the assessee company had allotted 40,000 warrants to Sh. Rajjeev Samant during the Board of D...