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No Addition u/s 56(2)(viib) as Rule 11UA Permits 10% Tolerance on Issue Price vs FMV
Case Law Details
- Case Name
- Go Fashion (India) Ltd. Vs PCIT (ITAT Chennai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2018-19
- Courts
- All ITAT, ITAT Chennai
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Go Fashion (India) Ltd. Vs PCIT (ITAT Chennai)
Conclusion: The difference in the fair market value and the issue price of compulsory convertible preference shares was only 0.65%, therefore as per Rule 11UA issue price was deemed to be fair market value and hence no scope for addition required to be made u/s. 56(2)(viib).
Held: Assessee-company had issued compulsory convertible preference shares raising Rs. 100 crore under a private equity investment made by ICICI Venture through India Advantage Fund S4-I. The shares were issued for Rs. 416.69 per share, while the Fair Market V...
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