Addition u/s 56(2)(viib) sustained as method for FMV of equity shares not as per rule 11UA

ITO Vs Quark Enterprises Private Limited (ITAT Hyderabad)

ITAT Hyderabad held that addition under section 56(2)(viib) of the Income Tax Act sustained as method adopted for determination of FMV of equity shares by the assessee is not as per method prescribed under rule 11UA of Income Tax Rules.

Facts- During the course of assessment proceedings the AO, on verification of the financials observed from the balance sheet that the assessee company has received share premium to the extent of Rs.23,98,74,430/

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