Order erroneous as intrinsic value accepted without valuation report

Medicon Leather Pvt. Ltd. Vs ACIT (ITAT Bangalore)

AO could not have accepted the intrinsic value without calling for a value in terms of Rule 11UA of the Rules to find out whether class (i) or class (ii) of explanation (a) to Sec.56(2)(viib) of the Act would be applicable. In this ITAT held that the order of the AO was erroneous.

Facts-

The assessee is a company engaged in the business of manufacture of leather items. The assessee filed

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