ITAT deletes Section 56 addition for 1% difference in Valuation of Shares

Suzuki Suiting Pvt. Ltd. Vs I.T.O (ITAT Ahmedabad) Admittedly, the difference in the price of the share issued by the assessee and its fair market value and calculated and certified by the C.A. is barely 1% of its total value. The difference being Rs. 2.81 against the share value of Rs. 200/-, it is meager and immaterial to hold that the shares were issued at unjustifiably high prices, which is the essence and purport of the section invoked. In fact, we hold, that the valuation by the C.A. justifies the value at which the shares was issued by the assessee. The method for determining the fair m...