AO must determine FMV of shares in terms of Explanation to Sec. 56(2)(viib): ITAT

ITO Vs Priya Estate Developers Private Ltd. (ITAT Chennai) Assessee being a real estate developer, allotted 10060 equity shares as per the fair market value (FMV) computed in accordance with Sec.56(2)(viib) read with Rule 11U / 11UA. Money was not introduced in this year, but it was given in earlier years as promoter’s loans which were converted into equity share capital in this year. AO did not accept the valuation on the ground that the valuer did not mention the methodology of valuing the property. The purpose of issuing valuation certificate was not mentioned. Assessee submitted that one...